All Forum Posts by: Arjun S.

 Thank you so much! This definitely helps :)

I purchased my single-family home in 2018 when I was single. From the beginning, I rented out 3 of the 4 rooms while living in the remaining room. In June 2022, I got married and my wife moved in, and around that same time, all the tenants moved out. Since then, we've been using it solely as our primary residence. I claimed about $30,000 in depreciation on my tax return during the rental period. My capital gain, after recapturing depreciation, is approximately $300K. We plan to sell this home and buy a new primary residence next year. What are the tax implications of this sale? Will the rental period be considered a non-qualifying disposition? Given that it was both a rental and a primary residence for 4 years and solely a primary residence for the last 2 years, is my below assessment correct?

- Total 6 yrs  i.e 4 yrs (75% was rental and 25% primary) + 2yrs (100% primary)

- $300k capital gain / 6yrs is the net gain per yr

 - $200K for 4 rental yrs + $100k for 2 primary yrs

- So $150k (75% of $200k) is taxable and the remaining $50K (i.e 25 % primary) + $100K (2 yrs 100% primary) i.e $150k in total will be tax-free? 

Note: I do plan on checking with a qualified CPA before making a jump. But want to get an opinion or a better understanding on how IRS section 121 works in this case

Does anyone have recommendations for a good property management company in Montgomery, AL?

Hello @Don M.! I am planning to hold on to this for a while considering this area has a good appreciation potential over the next few years. 

Slab to completion is usually around 6months. So hopefully they will knock it out soon. Good luck with your project!

I would suggest exploring new construction or relatively newer properties in New Braunfels, Schertz, Selma, Cibolo area which are closer to both Austin and San Antonio and also in the price range you are looking for. They have good appreciation and a decent cash flow with current rates. I can definitely provide some referrals for property management if interested.

Hello @Don M.! They are finally all done with the construction and I had my prefinal walk 2 weeks back. It looks great overall and pretty happy with the deal.

Rents have gone up significantly in the area compared to where they were when I started out (~$1800 in 2021 to ~$2600 now). Still waiting on appraisal numbers but based on some recent numbers it should be close to $400K. That's still a good ~$100K over early 2021 numbers

 Was supposed to be this month. But was 2 weeks back was told it would be delayed by another 1.5months. Now with the hurricane in the area this week, not sure what the situation is. Probably they might have to start over again once weather settles if the area is badly impacted

Sorry I haven't updated this thread in a long time. Partly because there was zero progress until last month when I finally found out that permit was approved last month (Though website says it was approved in Nov 2021). RTR as mentioned previously is pretty hands off after providing with the required contacts early on. I followed up with the builder who said I will start getting weekly updates after March 17th once they pour foundation. But haven't heard anything since.

Permit delays are costing close to 1yr in lost time/rent since originally I was supposed to get this property in Nov 2021. And I was told once they pour foundation on Mar 17th (Which I have no idea if they have) will take another 6months to close.. My guess it will be Oct/Nov this year 2022

Yes it was through their recommended lender. Other than rate increase and permitting delay everything else was smooth and taken care of. But have to wait until it's all finally built and rented out to get a better final picture :) I am hoping all these price increases will be negated by the final appraisal once they are in, since these 6 months should add a decent amount of appreciation than the said numbers.