All Forum Posts by: Anthony King

@Joe Villeneuve I've seen you mention that number sequence before. Care to message me with the explanation as well?

@Raul Ortiz it has nothing to do with the VA home loan. You could use any mortgage product tou want for financing at the time of purchase. The capital gains exclusion is for military members that moved for a permanent change of station. Applies to active duty, guard, and reserve changing bases. Just google - capital gains exclusion and you can read a lot about it.

2 of 5 years for anyone

2 of 15 years for military members PCS'ing

@Raul Ortiz if you lived in it at least 2 out of the previous 5 years (it sounds like you did) you shouldn't have to pay ANY capital gains tax. You also said you used a VA loan? Did you by chance move out of town for a military move? If so, you could've lived there for 2 of the previous 15 years and paid no capital gains tax. Either way you should owe zero capital gains tax.

@Scott Mac I would let them use the basement, but definitely consider charging them a $.10 toll each time they use the basement steps.

@William Craft it is typical for sellers to withhold leases, tax returns, expense documents, etc until they at least know they are dealing with a serious buyer. There is a lot of sensitive info that not every tire kicker needs to see. I would proceed based on a seller's word at this point, but verify everything after you have an accepted offer.

@Yadira Gutierrez not sure what you're asking.

@Jason Kang the internet has worked well for me. Any site that you would use to research your local market can be used just about anywhere. Investor friendly realtors, property managers, lenders, and insurance brokers are good resources available in every market as well. There's no easy answer. You have to put in the work in identifying a market that works for you. Then after countless hours identifying a market, you have to put in countless more hours becoming intimately familiar with that market.

@Colin Kanuch apply for the conventional mortgage together and determine how much equity each person will get based on down payment amount. Form an LLC prior to finding a deal with both (all) names in it then draw up an operating agreement spelling out ownership equity between both parties. If your total closing day costs equal $100,000 and you put in $60k and your partner puts in $40k then in your OA you have 60% ownership and partner has 40% ownership. As long as the property is cash flow positive then the closing day is the only time you use your own money. After that it pays for itself. Both names will be on the mortgage equally liable to pay, and then after closing file a quit claim deed with your county into your LLC. I did this exact process with my brother on a STR where I own 65% and he owns 35%. We also setup a joint business account for our LLC that all credits/debits for the property go through. Never our personal accounts. Speak to your lender during the process about the quit claim plan. I have had several mortgages close with my personal name on the mortgage and the title is now in an LLC. It is extremely rare for a lender to call the due on sale clause as long as you keep paying the mortgage. I have asked every lender I've used and the general consensus is, "yeah that's fine, that's what everyone does." Just be up front with them.

Disclaimer: I am not a lawyer, real estate pro, or tax professional. This is just what I have done.

Remember, both parties are equally liable for the mortgage. The bank doesn't care who owes 60%/40% so I would address procedures in case of default in your operating agreement. Any real estate lawyer can put together a solid OA for you to address all these concerns.

@Sarah Kartsher I invest in Ohio as well. Please tell us what bank!!!

@Matthew Vedder where is your analysis? I'm not seeing it.