All Forum Posts by: Blake M Pursel
Blake M Pursel has started 6 posts and replied 15 times.
Post: Need help on 1031 exchange of two properties
- Posts 16
- Votes 8
that tenant moved out first of the year, and the place was very rough. (It was rented for 500. That tenant had been there 13 years. I planned to remodel and brrrr. After the remodel, I was planning to rent it closer to 1000)
Once the tenant was out, I went in and basically gutted the place. As I’ve been learning more about real estate and trying to get more rentals, I’ve been learning to wholesale. And have completed a couple transactions. A couple weeks ago I stumbled upon a for sale by owner sign. And called on it, in hopes I could possibly get it under contract to wholesale.
the place was nice. Turn key, and rent ready. The woman selling it was an older woman who’s husband had passed and she was selling there rentals.
I got it under contract for 53k. And I think I could wholesale it for 75k
as I got to thinking, the property I have gutted is similar size and a similar property. I got it for a steal, because I bought it off of my aunt.
So I decided to try to sell it. As is, in order to be able to keep the turn key property.
I have it under contract for 58k, when I bought it from my aunt for 42,500.
if I get the 58k for it, I can turn and purchase the turn key property for 53k. And have a rent ready house.
as opposed to my gutted property which is going to cost at least another 15k to get up to standards.
it’s a no brainer play to me, but I purchased it for 42,500 and I now have it under contract for 58,000. I don’t want to pay taxes on the gain.
Quote from @Dave Foster:
@Blake M Pursel, If you want to do a 1031 exchange you will have to sell your old property before you take title to your new property. A reverse exchange let's you control your new property as your QI takes title and holds it for you. But at the end you have to close your sale before closing your purchase. A reverse is a pretty costly alternative if you can simply adjust your calendars and timelines other ways.
What concerns me more is the property you are selling. If you purchased that property primarily to fix and sell then it would not qualify for a 1031. 1031s are for property you purchased with the intent of holding for productive use. So by nature it is more of a buy and hold strategy.
Post: Need help on 1031 exchange of two properties
- Posts 16
- Votes 8
So I have a few rental properties. And I am wanting to get a ton more! I work a day job, but have also been wholesaling to try to bring in extra cash, for down payments on rental properties. I got a new property under contract a couple days ago to wholesale, and I got it for a good deal.
I have decided I want to sell one of my properties that I currently have gutted, and am rehabbing, in order to keep the property that I got under contract to wholesale.
Do I have to close on my property I am rehabbing before I close on the new place I got under contract?
I got the new deal under contract at a good price, and could get out of the rehab place almost evenly.
But if I close on the new place first, ( I have the funds to float them both) will I get taxed hard on the sale of my rehab property?
Or how do I 1031 this so I have no taxes?
Essentially I am wanting to trade the properties out for similar value.
Post: Section 8 or not with new rentals
- Posts 16
- Votes 8
Curious on what people’s take is with making your rentals section 8. Fairly new to all this, but I have a couple rentals, and I’m working on a brrrr right now that I am making the place very nice. My initial thought is I don’t want section 8, because it is more likely that my property will get torn up. But listening to these “gurus” online say that they can charge higher rent rates with section 8 has me wondering.
Could anyone shed some light on this?
thanks!
Post: Brrrr help and advice for the new guy
- Posts 16
- Votes 8
Alright, question time!!
So I purchased a property a few months back with a conventional loan. 20% down payment.
The tenant will be out of the property later this month and I will be ready to rehab the property.
I have spoke with the same bank that I got my initial loan from, and they are willing to fund the rehab or 80% of it at least.
It would be possible for me to fund the rehab without them, but it would be stretching me thin.
My issue is my banker told me if she were to give me the rehab loan, I would have to wait 12 months to be able to do a cash out Refi.
If all repairs are made in say 2 months and I get another renter in, can I go to a different bank or lender to get an immediate cash out Refi, then just pay the initial bank off?
I’m trying to avoid having my equity tied up in there for 12 months.
Post: Bigger Pockets Meet Up - Kansas City!
- Posts 16
- Votes 8
I am just now seeing this as the event is already going on! I would love to know when the next one will be and look forward to meeting and talking with more of you in the future!
Post: 1031 exchange rules and regulations
- Posts 16
- Votes 8
That was an extremely informative article!! I really appreciate it!
Post: 1031 exchange rules and regulations
- Posts 16
- Votes 8
I am trying to learn more about the regulations of a 1031 exchange. The way I understand it is that you must find a property to purchase that is of equal or more value. What I am unsure of, is does that have to be one property?
If I sell a house for 200k, and I wanted to do a 1031 exchange, does it have to be one house for 200k or more? Or could I buy four 50k houses? These are only hypothetical numbers!
Thanks!
Post: Concrete stairs suggestions
- Posts 16
- Votes 8
Thank you for the help!!
Post: Concrete stairs suggestions
- Posts 16
- Votes 8
Originally posted by @Scott Mac:
Maybe talk to two or three slab jackers and get some bids.
Also know there are two different methods of slab jacking. One is more permanent.
Also know you seems to have a soil issue causing this and to keep the stairs in "tip Top" shape will require you inspecting them for future movement and having the re-slab jacked if needed.
Stair problems are a lawsuit waiting to happen.
They need to be spot on perfect at all times--not just close to OK.
And it looks like that big tree to the left might be part of the problem.
Or you could get some bids on a demo and re-pour.
I did a quick Concept Mockup below.
Good Luck!
Thanks for the response, by fixing the stairs with concrete I thought my only option would be to demo and re pour.
I will need to do some research on slab jacking, as I have never heard of that before.
Could you possibly explain that to me?
Secondly, what software did you use to create that mock up example? I really like that!
Post: Concrete stairs suggestions
- Posts 16
- Votes 8
Thanks for the response, by fixing the stairs with concrete I thought my only option would be to demo and re pour.
I will need to do some research on slab jacking, as I have never heard of that before.
Could you possibly explain that to me?
Secondly, what software did you use to create that mock up example? I really like that!