All Forum Posts by: Nimit A.

Hi all, I have a property in Atlanta that was successfully rented out to the same tenant for a couple of years with no major red flags -- good credit score and stable job. Unfortunately, last year the tenant failed to pay rent for a while which led to an eviction and the property was found to be significantly damaged -- water damage, fixtures damaged, etc.. Insurance is covering some of the damage but definitely not most of it. 

I haven't had a great experience with my property management company and they've quoted ~$60k to bring the property back to rental condition. I think this is steep given the list of damages so I was wondering what might be the best strategy here or if anyone has any advice?

I can see 3 different scenarios:

1. Sell the property but will probably sell for much less than market price + rehab cost 

2. Pay the $60k to rehab with existing property manager

3. Partner with another property manager in the area that can rehab the property for cheaper and I can pay them some amount extra

Thanks in advance.

Dick, that would mean that I would have to buy it outright, correct? Meaning I can't get a mortgage. If not, what would be the tax benefits?

Does anyone know if there are any special tax benefits in this situation:

Buy a 2/3 bedroom house and have the child live in one of the bedrooms and rent out the others. 

Would I file taxes normally i.e. as if I am only getting rent from the other 1/2 bedrooms and no other tax benefits when I sell? Sorry if I missed a previous thread on this, but couldn't find anything.

Thanks for the reply Patrick. Do you know how long I would have to rent the property out after doing a 1031 before I could start living in it?

I have a question for which I couldn't find the answer to easily. I am in the current situation:

I bought a property for x in CA and now the property is worth X+y where y is >> 500k therefore I have to pay a lot of taxes on the profit (I am married so the tax exemption should be 500k). My question is this- what if I rented out the property for a year, 1031 exchanged the property into another one and then started living in the new one; would I have to pay any taxes? Or would I have avoided the extra tax that I would have incurred over the 500k? 

Hey guys, I'm just getting started with real estate investing and want to get started on purchasing my first rental property. I am a relatively young investor (22 y/o) and was looking into the Mountain House area as it is nearby where I live. I have a couple of questions related to this:

1. I was wondering if anyone has heard of or has any experiences with someone with not that much credit history getting a loan. I have a good income and have money available for a down payment with a credit score in the low 700s, but does anyone know if the bank would give me a good rate for a 30 year loan? 

2. I was looking into the mountain house area and it seems like the community is really good and is up and coming still. Does anyone have any experience with this area? It seems like an up and coming area for bay arears that may be getting priced out of the valley.

3. The down side to this community is that the 1% guideline would not be applicable here... In fact it would be closer to .5%. But I was thinking with the tax advantages, newly constructed homes, no property manager, it would be fine to start here. My rational is that repairs would not be a big issue and I could get warranty to offset any smaller repairs and so most of the generated rental income could be used towards the monthly payments and property taxes. I would honestly be very fine with breaking even right now as it would be my first purchase and I have no financial obligations.

Thanks a lot!