re: Odd thing about Social media, you can watch a divorce in real time: Stayfitbrit & S2 cap

Humanity decay. Social media is the means.

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I feel bad for the normal people that put their money into this, but most of these social media guys who spew complete arrogant bullshite completely deserve this.

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I don't feel bad for any of them because they are all stupid

A lot of people who took a RE investor course from a social media guy they saw on TikTok, then went out and bought an Airbnb, then took 100% bonus depreciation on that Airbnb are now learning about recapture from the IRS on top of many more lessons.

They are getting triple fricked because of this scenario:

Buy with an ARM, underwrite the deal like rates will stay cheap forever, then act surprised when the loan resets and the new monthly carry blows past the rent.

Then comes the really fun part. They took huge bonus depreciation upfront, which lowered their adjusted tax basis. So now they can sell the property for less than they originally paid, take an actual loss, and still get hit with depreciation recapture and potentially show a taxable gain on paper.

So the deal loses money every month, sells for a loss, and still creates a tax bill on the way out.

Just pure ignorance all around

I saw the same thing happen years ago when the Flip This House shows started and everyone and their mom thought they could flip a house only to do very little research and lose their asses.

RE investing is not for everyone but people are gullible.