All Forum Posts by: Aaron Duthie

Hi Vincent - I'm going through the same scenario now but on the Seller side. I'm helping the buyer assume my FHA loan and fill the difference between FHA loan balance and sales price with a second mortgage. Still in early stage of the process, but here are a couple things I've seen so far that might be helpful to consider:

1. You'll want to confirm with the current loan servicer that they will allow the loan to be assumed in this fashion (adding a second mortgage at the closing table).

2. In order to qualify for the second mortgage, which will likely be a non-QM loan, their LTV requirements will be between 80-90%, meaning you'll still have to have some sort of downpayment.

3. If you do need a downpayment, and the loan amount goes below 100k, it might be harder to find a lender willing to loan out that small of an amount. 

If I learn more I'll update here.

Contesting your property tax assessment was a must this year. Frisco overshot my rental by 125k. It's good to have an automated service like Ownwell in place for homeowners in Texas. Makes sure you don't get caught off-guard, saving you and your future buyers a ton of money YoY.

Hi Ruben - couldn't agree more on your plans to house hack a multifamily here in Texas. 

I'm wrapping up my first duplex house hack in DFW (selling off-market now) and it's been by far the most rewarding experience, so much so I'm transitioning careers to get more involved in RE! Would love to connect and share what I've learned throughout the process so far.

@Matt Devincenzo yes I believe they are two separate lots. Both have their own legal description, property ID, Geo ID...

@Wayne Brooks 1) that's the point I'm going for. They take advantage of the low interest rate on my current loan, acquire their unit at market value (current loan amount), we all avoid agent costs, and I live in my unit now cost-free. Any issues here?

@Nathan Grabau thanks for the considerations

I've scoured the forums and haven't found one that addresses my unique situation below. Would love some input from a legal perspective..

Scenario: I own a full duplex. I live in unit A and rent out unit B. Each unit has its own tax ID. My FHA Mortgage covers the full duplex (unit A and B), including taxes and insurance collected in Escrow monthly.

I am considering selling Unit B Subject To to the current tenant, having them take over the unit B deed along with the whole mortgage (which covers unit A and B + all taxes/insurance).

Question: Beyond the typical Subject To sale concerns, are there any unique restrictions or ramifications I should be aware of if I move forward in this situation? 

Thanks BP Community!

If I "sell" my investment property to a buyer, they take my deed along with my mortgage. How is this viewed by the IRS? Did I just avoid a big tax bill, assuming no equity transfer?

@Dave Foster This is another route I hadn't considered before. Thanks!

@Matt Devincenzo perfectly answered! Plus forward thinking mentioning the 1031 exchange. Thank you!

Scenario: I have house hacked a Full Duplex for 2 years (lived in unit A, rented out unit B). The Full Duplex has two tax IDs, one for each unit, so I can sell each unit separately. Let's say I now sell the rental unit B.

Questions: 

- Does the $250k/$500k capital gains tax exclusion apply on this rental unit B sale, even though I was living in unit A of the Full Duplex?

- What are the tax implications if I then move out of unit A (my primary residence), start renting out unit A, then sell unit A within the initial 5 years of the original Full Duplex purchase? 

- If I didn't "use up" all of my $250k/$500k capital gains tax exclusion on the unit B sale, is there some sort of carry-forward amount I can apply on this unit A sale's capital gains profit?