All Forum Posts by: Aaron Smith

@Nathaniel Busch

@Dave Toelkes

So it sounds like selling a property using seller financing has great tax benefits, correct? From what I read above, it seems like, said simply, 50% of the proceeds from an installment sale are taxed at capital gains rate and 50% are tax free, correct? Obviously, I'm ignoring depreciation recapture here.

Seems like a huge plus that one could use when pitching seller financing.

Because there are not too many multifamilies in the area, I'm currently looking to buy a 2 level single family house and build a second kitchen on the second floor, just like @Ron Gallagher recommended, but not in the basement, in the second floor. Living in a basement sucks, and rent is lower as a result, and turnover higher. A friend of mine bought a 2 level house in college park and put in a very nice kitchen in the second floor. As far as the legality of putting in another kitchen, i have to do more research, but I believe its the stove that makes it a second kitchen. You see a lot of second kitchens on the MLS with the stove taken out, which I'm assuming is to make it legal. Then it can just be considered a 'wet bar.' All speculation though, I have to look it up. Anyone know?

The tricky part is walling off the upstairs and the downstairs, which is hard to do with some home layouts.

I'm only had one experience with flat fee with Trelora in Denver. Its the word realtor scrambled up. Anyway, they did a great job. If you think about it, with the internet now available to everyone, a big part of what realtors used to do is taken out of the equation. These flat fee groups just automate what a realtor does using technology and salaried workers.

Thanks for the response J Scott. In the Washington DC area, gut rehabs do cost around $150/SF if hiring out to a GC, although can be done for $100/SF. I read your book about estimating the costs; however most of it didn't apply since the cost of the areas are so different.

However, there are cheaper areas very close, like Baltimore, just 45 min to an hour. Seems like workers could commute in while living in the cheaper area. I think when contractors see that the property is in DC they will bid higher automatically.

No specific question in there, just adding to the commentary.

@Account Closed

Yes, you would, its an owner occupied loan. Beats hard money though.

Use biggerpockets hard money lender list so you don't have to be so wary of the hard money lender.

Thanks Tom, that helps a lot.