All Forum Posts by: Bill B.

Hey @Jake Andronico

I know you specialize in Reno but since it’s close I thought I’d ask. 

I watched a Brigg’s YouTube video on best places to retire and Carson City was #2.

I was thinking more of drive up occasionally during the summer place unless Vegas gets much worse. 

Do you have an overall opinion and an opinion compared to Reno/Vegas?

-thanks. 

We all wait with bated breath for the extensive thank you note they will write on their way out. About how they saved $6,000/yr for the last 10-20 years. Please share it. I’m sure you won’t be verbally assaulted about how greedy you are Basically they were gifted $60-$120k tax free. 

Anyway. As stated. You tell them you want to fix it up and charge $1,500/mo. If they want that they can have it. If they want to pay $1,300/mo as is, saving you the Reno cost. They can have that. Just thank your deity that you don’t live in a rent controlled city/state. And make sure you fix thsi BEFORE that happens. Or you will be screwed for life. 

As Randall stated, pretty much every county eliminated property tax valuations fights 5-10 years ago. They lowered the “taxable value” by 40-50% and then raised the tax rate about 35-45% lowering everyone’s taxes that year. So nobody fought it. Now all taxes are based on a super low rate you can’t fight. 

The only “good news” is you’re paying for last year’s shortage and thsi year’s taxes, or this year’s shortage and next year’s escrow account. 

Your payment went up $1,000/mo but the taxes only went up $5,200 which would be less than $450/mo. So you’re either catching up for a shortage last year, or doubling your reserves for next year. In 12 months your payment should drop $500/mo minus next year’s tax increase divided by 12. 

I didn’t see what state you moved to? (As AZ and your current state will fight over who gets to tax your gains with the federal government.)

I have to throw most of the shade on your horrible tax guy/cpa who didn’t tell you renting it out was a $50-$100k mistake. 

But, like you say, that ship has sailed. So PLEASE don’t make another huge financial decision and then tell that same person after you do it. If you can’t do a 1031 to a non-income tax state, figure out a year when you will have lower income and tax rates ar as low as possible. If trump hadn’t won you’d be forced to sell this year, but hopes are high he will extend his lower tax rates. 

You want to figure out how much you’r truly making on that $350k give or take in equity. As the cash flow is obviously much worse than you can earn in the bank with a basic CD. If you’re paying off less than $800/mo on your loan id say sell come April selling season. If you’re paying off more than $1,500/mo I’d probably keep it barring any major upcoming capex. (3-5 years out so buyer wouldn’t automatically ask for it to be repaired at sale.)

Good luck either way. 

Get your address changed!

While you’ll probably be able to eventually prove you’ve been living there. I assume you’ve got a loan that says you will be living there. I also assume you have homeowners insurance rather than landlord policy which is invalid if you’re not living there. Many states have discounted property taxes and lower yearly increases for owner occupied properties. Yoru bank probably wants yoru mailing address to match your ID. And finally most states have laws about how many days you have to change your information.  

But mostly the loan, the insurance and the property taxes. 

Plus what’s the upside to not changing it Day 1? It takes less than 20 minutes these days. 

What are the homes worth? 20-40k? Is the land worth at least $250k/acre? I wouldn’t be excited paying much more than the land value. (In case the local government decides they don’t want the mobile homes there any longer.)

If you’re In a title state make proof of utility pay off a condition of closing. (Probably same in attorney state but I have no experience there.)

it will make inspection problematic. What if you turn on water and it goes everywhere. Or you turn on power and there isn’t any? Depending on the amount owed I might pay it off after I’m under contract to do a property inspection and ask for the money back at closing. Otherwise you have to plan for worst possible results. 

It would/could be only 15% capital gains tax and yes you could/would deduct all selling costs including commissions and transfer taxes. If you didn’t think $6k was worth it you might find it’s under $5k. And then if it costs you $1k per lot for 1031 exchange it might be under $4k. Even less if splitting the lots costs any real money. And that’s if you can’t find something to buy for under $100k or time multiple sales at once. 

Is there a local developer/builder who might be interested in the whole package? You might make less, but you cut a lot of costs, make the 1031 exchange easy and maybe worthwhile. 

Maybe the AI can keep you from calling people on the no call list and violating the law? Will they have to be auto programmed to hang up and never call again if so requested? That would be a great upgrade. I don’t see any other upside. It’s basically spam email for phone calls. At least most cell carriers will auto-block them. 

I assume it’s not high enough that you or any family members want to take on the job? Are there any similar surrounding buildings? Can you reach out to their owners and see what they’re doing? Next time it snows drive around looking for snow removal teams and reach out to them for pricing?