Copyright © 1981, 1982, 1983, 1984, 1985,
1986, 1987, 1988, 1989, 1991, 1992, 1993,
1994, 1995, 1996, 1998, 2001, 2004, 2008, 2009
By John T. Reed,
All rights reserved.
Published by John T. Reed
342 Bryan Drive
Alamo, California 94507
Manufactured in the United States of America
Dedicated to my late mother,
Marion T. Reed
Other material by John T. Reed
About the author
John T. Reed was a landlord for 23 years. He has been a real estate writer since 1976. He has invested in New Jersey, Texas, and California. He is the editor and publisher of John T. Reed’s Real Estate Investor’s Monthly, a national newsletter—and the author and publisher of twenty books on various real estate investment subjects.
His real estate experience includes single-family rental houses, duplexes, a triplex, and apartment buildings ranging in size from twelve units to over two hundred units. He has been resident manager of his own buildings and property manager for other owners. Initially, Mr. Reed owned apartments in New Jersey—one of the most anti-landlord states and one of the tightest markets. From the seventies through the nineties, he was a landlord in Texas, which was at the other end of the spectrum in both laws and market conditions. Mr. Reed holds a bachelor of science degree from West Point and a master of business administration degree from Harvard Business School.
Leigh Robinson, author of Landlording, for his invaluable assistance in publishing and marketing this book—Bob Baldassari, CPA of Matthews, Carter, & Boyce of VA, for pointing out some technical errors—Bill Tappan, Jr., author of Real Estate Exchange and Acquisition Techniques, for pioneering the idea of putting legal references in a book for laymen and for his comments on this book—Bob Bruss, the late real estate columnist, for his generous assistance and favorable book reviews—Tom Kurkjian, for his comments on the first edition—John Whitman for his suggestions on book design—Jack Campbell, tax attorney in Albuquerque, NM, for his help with deals and tax questions—Brooke Gabrielson, tax attorney with Howser, Gertner and Brown in Newport Beach, CA, for his advice on deals and answers to questions—Apple Computer, Inc., and Adobe Systems Incorporated for producing the hardware and software I used to write, typeset, and produce this book—those who have attended my seminars for increasing my ability to get my ideas on taxes across and for correcting my errors—the intrepid tax pioneers who boldly went where no man had gone before and won; thereby giving us many of the tax breaks we enjoy today —my son Steve, who researched developments in tax law for the 19th edition.