Yes, local taxes as well as homeowner’s association (HOA) fees.
The management and maintenance company continues to look for a good tenant, and you have a fixed monthly cost of municipal taxes and committee fees (before the transaction is executed, we prepare for this situation too, and make sure that the investor will not be out of pocket and/or experience financial pressure)
The customary management rates range from 10-15% of gross rental income. 101 investors will enjoy a rate of only 10%.
Immediately after the purchase of the property, i.e., as soon as the renovations of the property commence.
In Florida, payment of fees and taxes is the owner’s responsibility, not the tenant’s, and as such, the management and maintenance company takes care of these fixed payments every month. These payments are paid out of the monthly rent that the property owner receives.
In light of the sophisticated tort law in the US, the legal advice of local attorneys is to hold the property through a local company in which the investor holds 100% of the company. In this way, there is a screen/buffer between the company and you, the investor, in case of a claim, etc. The cost of this is negligible and it provides strong protection.
There is no difference. An individual and a company pay the same rates. The company is transparent for tax purposes.
You are required to report your income as an investor to both American and Israeli tax authorities. There is a tax treaty between the two countries, and therefore taxation is offset and not doubled. 101 will assist you in choosing an accountant who will submit your tax return in the US to the IRS, which will be adjusted to the report you submit to the Israeli tax authorities as well.
We buy houses made from concrete or brick, not wooden houses.
Some of the properties purchased are foreclosed, and others are acquired under market price, and as such, they may be rundown. Sometimes the property simply needs to be renovated and/or systems repaired to full working condition. 101 insists on making sure that all the systems are in perfect working condition. This saves you, the investor, unnecessary ongoing maintenance costs while you have tenants renting the property.