All Forum Posts by: Bill B.

“Luckily”. It sounds like their quoted law/rule/regulation isn’t a violation you are making. They specifically say refusing to provide insurance is a violation. You aren’t the one failing to provide insurance. Let them sue the insurance company. I assume they’ve won before, they’ll win this time for the first time, or they’ll have to change their policy. 

id provide them with your insurance contact and let them fight it out. I don’t know if you can move on to new tenants during the process. 

ps they aren’t failing to provide insurance because of the handicap. They are choosing not to provide insurance because the specific “tool” they chose to treat their “handicap.”  If I choose stadium speakers for my tv or stereo to combat my hearing loss instead of hearing aids or headphones could you say no? I’m doing it because of my handicap. 

pps. Every google answer seems to say they can’t deny them. But maybe they need to hear from tenants lawyer. Maybe lease MTM incase animal becomes a problem or rents need to be increased. Good luck. 

let us know what happens. 

Nope. Because you filed jointly. All the irs cares about is that it’s the same tax payer. Because you pay together before and after you remain the same tax payer. IMHO. :-). 

Can you do anything about the IMHO subpar curb appeal?

It looks like a vertical container home from the street with one tiny window cut in. 

Either more windows, a bigger window, or different material/color on the inset? Can you remove the inset?

If the numbers check out. Everything else sounds bold/good. Well done. 

I was going to say the same thing. My title company provided it the last and only time I did seller financing. 

Daniel read your entire post and got the correct answer. As long as the rental portion of your purchase is as much or greater than the net sales price of your rental you’d be fine. Anything short will be 100% taxable, not pro-rated. 

So if you sell for $550k and net $500k after selling costs. (Regardless if you own it free and clear or have a $499k mortgage.). If you bought a $750k+ triplex you should be ok, assuming all units are equal, or you move in to a smaller than average unit. 2/3rds rental is $500k, 1/3rd residential. (Or a $667k 4plex with 1/4th primary.). Of course you have to reinvest all “cash” received as well or it will be 100% taxable. And get your QI involved before the sale. 

Then when you sell you can take 1/3rd of the gain tax free up to $250k or $500k if you don’t convert it to a rental for more than 3 years. 

You’d have to take to your lender about any rules they have if any about self-sufficiency. Or any other limitations. But you’re good to go on the 1031 side. 

1/12th of 18 acres as a minority owner to 7 relatives MIGHT be worth more than $0. But not much. You probably need 6 other relatives to agree to sell and force it 7 to 5. Or buy 6 more shares CHEAP. (Like much less than 1/24th the value each.). As mentioned worse case you could try to separate the land, but only if you can make 12 parcels all with road access, or someone’s getting hosed. 

Someone truly screwed up their will. (I’m sorry for your loss. But their lawyer should have said something…). I bought a cabin from 3 siblings and it SUCKED. And they all needed the money. Imagine if just 6 of your relatives think that land should stay in the family forever. They get to do that while only paying for half of it, AND having the other half chip in for insurance, taxes, repairs, etc etc. 

If your’e saying it’s appreciated 35% ($105-$141k) in less than 3 years he should definitely hold another year or two until he’s made another $15-20k without doing anything and made some breathing room.  

Otherwise he finds a “wholetailer” willing to front the renovation costs and split the profits with him. 

Insurance is up 20-25%, call it $200/yr

Property taxes up 3-5% call it $75/yr

HOA is same or plus $5-10/mo Call it $75/yr.

All in all maybe $30/mo, luckily rents are probably up $100-$150/mo

It seems like the expensive markets are going to get more and more expensive compared to cheaper markets. As percentage increases are larger when based on already higher numbers. 

A 22% increase on a $2,400 insurance policy hurts more than one on a $750/yr policy. Same with a 3-5% property tax increase on $1,500 or $2,000 versus a 5-10% increase on $5,000 or $7,000. Even if they both feel like robbery.

Not everything needs immediate attention. But that the things that do, do. Can they tell the difference? (Assuming they don’t have time to give immediate attention to everything I demand.)

Honestly the best value I’ve gotten out of my realtors are the ones that are the best people people. I’m a numbers guy. But I’ve had realtors that can talk selling realtors out of what the lowest offer they’d take, or what the highest offer they’ve gotten. People trust them when they say, we WILL close.  Or we aren’t nit picking, this thing we’re asking for as to be fixed, because we want to close. 

Could he…

Lend his friend the 48%. With a lien against the property, maybe no payments, maybe interest only, whatever…

Finish his current property sale. 

Buy his friend out for his cost, plus interest collected (if any) plus a reasonable profit? Maybe charge 7% and then refund twice the interest a profit. (Basically paying his friend 7% for the use of his money.)

 Maybe to keep it simple, if the IRS wouldn’t frown on it. No payments due for a year but calculated at 7%. So the friend doesn’t have to come out of pocket. Though hopefully the property is making money, so that shouldn’t be an issue.