All Forum Posts by: Alan Russell

Guys,

Sorry I wasn't more clear in my post.  So I know if I sell the house now I have about 100K of equity that I would not have to pay capital gains taxes on.  What I am trying to understand is;

If I rent it for say 5 years and then sell it will I have to pay taxes on the capital gains tax on the original 100k in equity as well as the additional increases or can I somehow reset my costs.

For instance if I move the house (sell it) to my LLC and then rent it can I protect the 100K in equity that I currently have from capital gains?

I need to understand what happens to the equity (for tax purposes) if I convert a single family home to a rental property.  Would this convert at a current tax cost basis?  For instance if I purchased a home for 125K and lived in it for 5 years then it appraised at 225K would my cost basis for tax purposes be 225K or 125K?

Did you agree to have him do work that was outside the scope?

I am not expert and I would suspect that every bank may be different however, I would think that if they repairs are done properly and certified then they shouldn't have any issue with loaning on the property.

I would probably check with my bank (mortgage dept) to see what their thoughts were.

Karen,

Strong passwords are the best defense against these guys. Use passwords that have Number letters and special characters to make these more difficult to figure out. Also longer is better.

ie.......P0werb0@t, etc

When I setup my local LLC I call an attorney that I had used in the past and explained I what LegalZoom would charge me for setting up the LLC and he said.....I can do it for that come on in.

I'm just sayin

I recently got an email from a company that offered;

Did you know there is a way to fund your own deals and be your own gap financer? Its called an Unsecured Business Line of Credit and it is a key to you getting 100% financing on ALL your deals going forward. ... we've helped hundreds of people get them... even if you have no collateral, problems with your credit, or have tried unsuccessfully to get one in the past.

Well... I just walked in and told all my funding strategists that they can give you $990 off this product... so I just had to let you know. It is a key to funding the deals you've been looking at.

You can't get it online so you have have to call one of my funding strategists. We normally sell this product for $2,395... but if you call me before the end of the month we can give it to you for $1,405... that's an incredible deal that you don't wan't to loose.

even though the company is listed on this site I still figured it was a scam and ignored it.

the easiest way to meet minimum code in most areas would be to add gcfi breakers in thru panel. this meets the nec requirements however, some municipalities could have requirements that would exceed the minimum nec code...

Easiest way to know for sure is to call the city inspectors office and ask.

Interesting topic....My Sister-in-Law is doing this right now (moving to NC though). Her current house is appraised at 300K and she owes 50K and only has 5 Years left on current Mortgage. After doing some research she discovered that with the current rates she can refinance the current home for 150k cut her current house payment in half saving $ 700/month. This will allow her to purchase a home here in NC for around 125000 and pay cash. Renting this out for a year or two till she is ready to retire will allow herr to live pretty much mortgage fee. Of course I end up with a little more work managing her property for her in the interim but its family right?

I have talked with several banks about purchasing properties by paying cash and then doing a "cash out finance". They all said they would allow it with no holding period however, the caveat is that they would only loan 80% of the purchase price or appraisal (which ever is lower). Since my Model is to purchase cash, rehab and then rent the properties and pull out 80% of the ARV I have to wait through the 6 months seasoning before they will allow me to pull out more than the purchase price.