Investing in Billings
Investing in Billings real estate, with the numbers laid out
I've been investing since 2019. My wife and I have flipped homes and own rentals, and I'm a CPA. This page covers how I look at a property, how to run the numbers, and the tax basics every new investor should understand before buying.
By Eric Antonson, REALTOR® & CPA · Last updated September 28, 2026
What I look for in a house that needs some love
I look for good bones and opportunity. Here's my checklist:
Good bones
Solid structure and a layout worth working with. Cosmetic problems are cheap to fix. Structural ones usually aren't.
Closed-off space with potential
Rooms that could be opened up to the room next door, or converted into a different kind of space that fits how people live now.
Room to add a bedroom or a bathroom
Adding a bedroom or bathroom can change who the home appeals to, and what it rents or sells for.
Spaces that can feel more inviting
Opening things up, bringing in light, and making the house feel like somewhere you want to be.
A yard that just needs cleaning up
Overgrown yards scare buyers off, and they're often one of the cheapest things to fix.
The neighborhood
If it's the worst house in a good neighborhood, that's a good sign. The neighborhood supports the value once the house catches up.
Rental property cash-flow calculator
A quick first look at a rental. Change any number to match the property. Rent, taxes and insurance should come from real quotes and comparable rentals, not guesses.
Tax basics every new investor should know
- Depreciation: a residential rental building (not the land) is generally depreciated over 27.5 years. It's a deduction that doesn't cost you cash each year, which is why rentals can show a tax loss while still putting money in your pocket.
- Recapture when you sell: the depreciation you took (or could have taken) is generally taxed when you sell, at up to 25% federally. It isn't a reason to skip depreciation. You had the use of that tax savings for years, and a 1031 exchange can defer it.
- 1031 exchanges: sell one investment property and buy another, and you may be able to defer the gain. The rules are strict: you have 45 days to identify the replacement and 180 days to close, and you need a qualified intermediary before you sell. Your own home doesn't qualify.
- Rental losses: rental losses are generally "passive." If you actively participate, you may be able to deduct up to $25,000 of rental losses against other income, but that phases out between $100,000 and $150,000 of modified adjusted gross income.
- LLCs are about liability, not taxes: a single-member LLC is generally ignored for federal income tax, so the rental still goes on Schedule E. Weigh an LLC for liability and financing reasons, and talk to an attorney.
- House hacking: FHA and VA financing can be used on a 2–4 unit property if you live in one of the units. It's a common way to start with less cash. Ask your lender about the occupancy rules.
I'm a CPA, but this is general education, not tax advice for your situation. Bring these questions to your own tax professional before you buy or sell.
Sources: IRS Publication 527, Residential Rental Property · IRS Publication 946, How to Depreciate Property · IRS Topic 409, Capital Gains and Losses · IRS, Like-Kind Exchanges · IRS Publication 925, Passive Activity and At-Risk Rules
How I help investors
Find the opportunity
I look past the listing photos for layout changes, added bedrooms and bathrooms, and the worst house in a good neighborhood.
Run the numbers together
Purchase, rehab, rent and resale, with the assumptions written down so you can see exactly what has to go right.
Plan the exit before you buy
Rent, sell, or exchange. Knowing which one you're likely to choose changes what you should buy.
Inherited a rental?
Free calculators for keep vs. rent vs. sell, net proceeds and sibling buyouts.
Get the toolkit →Looking at a property?
Send me the address. I'll give you my honest read and run the numbers with you.