All Forum Posts by: Allan C.

@Ryan G. Is that area really 7+ cap? Most multifamily properties trade 6 cap and below in good markets. Either your rents are inflated, you are missing expenses, or there is risk that you are not accounting for.

Have you asked for a T12 to verify your assumptions?

@Steve Chan yes, step-up basis after passing to heirs or 1031 until you step-up are ultimate differentiators in RE investing to utilize depreciation to tax shield your positive earnings.

As to your question on why still leave money in other securities through your 401k, I do it for diversification. Diversification in the long run enables stability - whether its asset class, growth vs value, geographic location, or other means of diversification.

Wires cost $30-50 depending on bank while ACH will cost $1-3.  If your distribution is low enough you can zelle for free. 

@Karen Mills water supply and drainage are separate items so the plumber will need to provide clarity on what the exact issue is. Is he suggesting the grading issue is causing the foundation to shift, thus damaging either the supply line or drainage? The root cause of the issue will determine who is liable, or even if there is liability.

@Adam L. I’ve relocated 5 times over the last 10 years, and have always sold my primary. Sometimes I’ve sold right away and other times I’ve sold within 2 years of moving out. The benefit of capital gains tax exclusion on your primary residence is an advantage often unparalleled - you don’t want to lose it.

It’s often easier dealing with a sale while you are local, but the timing of the sale is up to you to decide.

If you’re concerned about buying back into an appreciating market, don’t forget about all the reno benefits you’ll receive when you come back, so that may defray some of the higher re-entry costs. You’ll also have the benefit of investing your sale proceeds so hopefully that will provide additional capital if needed to buy back into that market.

@Karen Mills clarify what you mean by where toilet screws to tile. Do you simply mean the main toilet drain, or do you have a water supply line that comes from the floor? If this is the main toilet drain, then you simply ask them to not use the toilet and you can wait until the morning. It’s likely that you have a leaking wax seal between the toilet fixture and the drain.

If the leak is coming from water supply line see if the leak stops after you shut off the valve. Regardless whether you perform repairs tonight or wait until morning you should shut off the water supply immediately.

@Mary Jay we use online transfer via ACH or equivalent method.

@Brian Williams it's still not clear how you have much profit in this deal if you sell. If you FSBO it's not guaranteed that you'll achieve market rates on your sale, so I wouldn't bank on saving half the commission.

I also haven’t heard how you will achieve differentiated returns if your purchased a new property. What will be different with your new purchase that you didn’t achieve with the current? Based on the information you’ve provided, it seems that you do not have much value driver for selling.

@John Faraday it seems that you have great experience and a system worked out to capture value/minimize cost along the transaction process. I also suspect that you have a solution to the other costs (i.e. depreciation recapture), but you didn't mention it.  If you have a fair amount of equity in the properties as you suggest, then it seems that you may have held these assets for a period of time, by which depreciation may have accumulated to a large extent. 

If you have a plan to manage dep. recapture and cap gains then i'm interested to hear. Many folks don't factor these impacts properly, so we can all benefit from tips on how others manage. 

@John Farady are your transaction inefficiencies (commission, depreciation recapture, cap gains tax) significantly lower than your anticipated market decline expectations?