All Forum Posts by: Ben Packwood

Thank you Theresa Worsham I really appreciate your help on clarifying this for me. 

So i've got a home that i'm purchasing in Springfield Missouri on S Scenic Avenue to hold as a long term rental. I just heard from the appraiser today that the home is zoned highway-commercial. Below is what the appraiser said. 

"I talked with the zoning dept. The Highway-Commercial zoning considers this house to be legally permissible which means it can be modified, built on, etc. It isn't a "Grandfathered" or legally non-permissible situation. However, it must be rebuilt, as a house, within 18 mos if it should be destroyed. After that it has to conform to present zoning. That is a wrinkle I hadn't seen. The only problem I can see, is the lot size is really small. I tried to call the Building and Development Dept and got VM. I've had the hardest time reaching people on this one ever."

Should this be a concern for me? How does this affect the value of the property? Any other concerns that i should have? Any Springfield, MO investors out there have experience with this?

@Russell Brazil that's what I was thinking to after looking at this some more and talking to a local title company. A 1031 exchange sounds like a good option if I have get a larger profit down the road though. Thanks!

Thanks a lot Dave. That makes this easier to understand for me and helps me to make a decision on this. I appreciate it!

So I have a house that I purchased from another landlord in April of 2015. I purchased the property for $17,600 but I currently owe $19,664 on the house. Well a few months after buying the house the tenants that I "inherited" stopped paying so I ended up having to evict them. Now I have a cash offer from the neighbor to purchase the home for $28,500 so I've decided to sell it to him because its a one bedroom house that probably will be hard to rent out anyways. Should I do a 1031 exchange or not on this because I know its costs some money to do a 1031 exchange. Please help!!!!