All Forum Posts by: Brett Loetz

@Glenna Wood

Thanks for all the great advice from everyone!

I now definitely know a 1031 isn’t “too expensive” and it would be great to not pay these taxes now but with the challenges my family is currently facing i think it’s best for me to hit this cash register once.

On the other “bright” side, I should be finished with the rehab on my second brrrr within two weeks so I’ll still have 2 single family rentals after selling off what was my first brrrr. 👍🏼

@Whitney Hutten

He claims he deals with real estate, but depending how this years taxes go. I might look around for another one.

We thought about the 1031 exchange actually. Problem is finding a deal good enough I would be able to refi out of in just a few months in our market right now.

Also my accountant told me doing a 1031 on this property with this equity probably didn’t make much sense since the 1031 exchange itself can cost a lot. Does that sound right?

He said you mostly want to do them on properties where your looking at a bigger profit or where you have been claiming depreciation for 8-10 or more years and you could be paying a lot in “recapture” fees. This was one of the eye opening times I thought maybe he’s not the best accountant for me because what I’ve read online would make me think differently about the 1031.

We are selling a property we have purchased in Nov. 2018, and are scheduled to close on May 8th.

We did a rehab on it, used the brrrr strategy and rented it out from June to January to a short term insurance deal that paid great money.

Things have come up in our household and we decided to sell this property to pay for some other stuff.

My question is, wouldn’t I pay long term capital gains on this gain because we have owned it this long? We’re about 131k into it and selling for 189k. My accountant told me I’d probably be paying between 15-20k in taxes on it. Sound right? To me that would be the number if it was added to my ordinary income, but if it was a lower rate(long term) then I should be more like 8-10k from what I’m reading.

Thanks for any input.

@Jaysen Medhurst I think I will see at least 150-200. Either way it should be a decent return👍🏼

My first brrrr worked great, but this second one has been a headache. Purchased the property for a little to much at 115k.

And the renovation went longer than expected and also over budget because we decided to finish about 1000 sq ft in the basement. Basically I will be around 150k in on a nice house in a B class neighborhood that should appraise around 190k. I could turn and rent the property for 1450/mo leaving probably close to 15k cash in if after refi+closing costs.

Should give me cash flow of about 200 a month after maint. and vacancy.

Should I keep it as a rental or sell it, pay the realtor his money and maybe walk away with 30k before taxes in profit? Doesn’t seem like a good enough quick gain to me considering the money invested and time (6 months). I’m thinking rent it and slowly get my money back. This would give me my 3rd rental.

Opinions on sell vs rent and also on how I did with the brrrr? Thanks.

I have two rentals and right now I am about half way done with my 2nd brrrr house. The rentals are owned by my LLC just for them. I am wondering should I be operating a second LLC for the management side? I do a lot of my own work but am getting to the point where I contract more out. I have been purchasing a lot of tools I want to be able to write off. Also in my contracts so far I do the landscaping therefore own a mower for it. What's your opinion of best way to save on taxes and write off all the tools/equipment I need for this?? Thanks in advance!

Newer to renting, just finished my first brrrr and listed it for rent, I’ve got an offer from temporary accommodations for a 6 mo lease for clients that need a house. Insurance will be paying rent and they say I can screen the tenants myself still. They offered almost twice what I was asking in rent for the 6 months. Has anyone rented in this sort of situation? Problems I see is I have a fully remodeled house with all new everything that could get long term tenants and instead these people know they won’t be there long. Plus it will put my house vacant in December which won’t be easy to find a tenant at that point. Thoughts???

@Elijah Withers

Thanks! Actually had seen the property listed to go on the county tax sale months before I bought it. I kept my eye on it and noticed it was listed for sale about a month prior to the upcoming sale. Listed at 105k and I estimated 30k in rehab. So I offered 90k cash (which I had from saving and a HELOC) but there were multiple offers so my realtor said if I wanted it he recommended just doing a second offer of 105k cash. Was able to get it for that, even though they had a 115k offer.

Furnace and AC are only about 10 years old and some of the electric was updated so I was able to leave all that. Tore out/replaced the old kitchen, flooring, trim, bathrooms, windows, doors, garage door and opener. Painted the aluminum siding for a new look. Painted all the drywall and put up all new lighting. Tore some bushes out the front yard and landscaping and dressed it up with new stone and some grass seed. Put about 30k into it. Which came from savings and a loan on my 401k.

Only major thing left is the roof probably could use new shingles in maybe 5 years or so. Was able to clean up the staining and the shingles themselves are fine.

I just completed my first brrrr property. This will give me my second rental property. I’m all in at about 136k on a property that’s now worth about 185k. I should be able to rent it for 1600 a month, and refi it to get roughly 129k back out. If I get 70 percent. Leaving 7k in the property but also making around 650/mo. after mortgage/taxes/insurance. What’s your opinion on how I did? I went over my initial budget a little, but ended up with a really nice house, all redone. I did almost all the work myself, on the nights and weekends, when I wasn’t working OT at my day job. So it did take me 5 months to get done. I hope to contract out a little more on my next one to get done faster. I’ve learned so much with this one, and added a few good contacts to my phone.

I currently have one rental property and am in the middle of my first Brrrr, I’m doing most the rehab work myself on the house so I have a lot of driving back and forth to the property, and also to the local supply stores. I’m wondering what the best way to keep track of my mileage is. Last year for my rental, I didn’t have to much so the old pen and paper worked fine. Just looking for better ideas for now and as I start to grow my portfolio. My accountant mentioned MileIQ, is anyone using that app? Thanks for any advice.