All Forum Posts by: Brent Perkins

I had an interesting applicant on a single family property: A business providing in home care to adults with disabilities. They are funded by the state Department of Developmental Disability.

Are there any concerns renting to a business I might not be considering?

Thanks!

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This is a strategy some people use especially for auctions because sometimes you must pay cash.

You can look into delayed financing or a cash out. Bigquestion is what seasoning requirements a lender has. Another question is it is going to be a primary residence or investment property. Are you a buying in personel name on title or with LLC on title etc. These will all impact financing options.

This would be a personal residence.

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Hi there! We are looking to purchase our next home: our parents are willing to pay for the home with cash and then allow us to obtain a mortgage to pay them back. I am wondering how the logistics of this would work?

Possible scenario: Home is purchased at auction or wholesale by parent. Maybe title is taken with both of our names on it? Mortgage is then obtained as soon as possible to pay back parents. Parent removes themselves from title.

Is there a best way to go about this? I am sure there are many implications I am not aware of, so thank you all for chiming in.

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Originally posted by @Basit Siddiqi:

@Brent Perkins

There is good news, you can likely turn the property to a rental for 3 years and still be eligible for the section 121 exclusion($250,000 of capital gain or $500,000 if married filing jointly). You would only be subject to depreciation recapture based on the depreciation taken during the period it was used as a rental

Have you looked into doing a cash-out refinance before turning it into a rental? this will allow you to pull out the equity.

A refi seems like a good idea if I were to keep it as a rental long term.

Thank you both for your replies!

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Originally posted by @Ed Emmons:

100k divided by $500 a month is almost 17 yrs. Do you need the money now or do you want to spread it out? Is this going to be your only rental and if so is it going to be worth the hassle?

This would become my first rental. It should not be too big a hassle since the home is in good shape and I am not moving far from it. I do not need the money now; just trying to make the best use of my money.

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I have been browsing the forums for a bit now after discovering the Bigger Pockets Podcast a while back. What a great resource! I am hoping you all could chime in on this one:

My personal residence (and our first home) was purchase a few years ago at a great price and now has $100k in equity and total value of $240k. We would like to move into something with more land and I cant decide if we should keep our first house which I could sell with no capital gains, or keep and have about $500 in cash flow as a rental. The thought of loosing out on the primary residence tax exemption makes me cringe.

Is there some simple math that would make our decision easier? Thank you for your guidance!

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All Forum Posts by: Brent Perkins

Brent Perkins has started 3 posts and replied 7 times.

Post: Renting to a state funded in-home-care business?

Post: Renting to a state funded in-home-care business?

Post: Purchase home with cash, then obtain mortgage?

Post: Purchase home with cash, then obtain mortgage?

Post: To sell or not to sell: Personal residence

Post: To sell or not to sell: Personal residence

Post: To sell or not to sell: Personal residence