All Forum Posts by: Carlos Ptriawan

What issue do you see the most with room renting and how to solve that ?

@Collin Chan That's great strategy. Yes building ADU is good for retirement planning and even 'stay-free' in NorCal. Which area that you're looking for MF ?

@Collin Chan: We're pretty much the same, I'm in Pleasanton with rental in San Jose. I'm now focusing the energy to invest OOS, In particular, I like Alabama. 

I'm thinking of 1031ing the rental as well, I've been comparing MF vs SFR, I've talked to few vendors.Last week I attend a seminar on new construction 4plex in UT/AZ, but found that CoC/cap rate is better with SFH. I also found 1031 to MF is extremely difficult and time-sensitive.

I've calculated with ADU addition as well, if the property is added with ADU, the gross income is double; but if one do 1031 to multiple smaller home OOS, the gross income is tripled.

For MF, rather than 1031, I prefer just to do MF syndication with debt or equity offering. Direct from the sponsor. Less hassle and have preferred IRR.

@Drew Leo Family with one 150K income can still live in Silicon Valley, actually, one can still rent a condo for $2K something. If they want to buy, a condo or townhouse in Livermore/Tracy area is still around $300K. I think the rent price is still affordable in Silicon Valley, what is not affordable is SFH. But condo or townhome is still doable, especially if it's not in good school neighborhood. If a family buy-in Fresno and work in SJC with temp house, that's more expensive compared to just plain renting.

anybody has sample of ADU and JADU floor plan ? so it's clear what's allowed and not allowed.

@Nicholas Aiola: Hi Nicholas, this is new question: I bought a house where the first 4 years as primary, the next 3 years after that as secondary and 2 years after I'm renting it out-- If I sell the house now, what's my cost basis? Is it based when I acquired the property for the first time OR FMV on the year when I converted from secondary to a rental property ?... I've asked some tax professionals and got different replies in this aspect.

Hi Lisa,
- as long as you invest in OZ before Dec 2021, you're set for the tax deferral.
- I agree with other comments, investing in OZ is very risky, most of the offering is an opportunistic-style investment (compared to core/value add in 1031 DST), so there's quite a bit risk of losing money. In fact, I know a few OZ funds that are already on some sort of trouble. You need to do a very good job DD vetting the sponsor.
- Another option other than 1031 is to live in the property that you want to sell for 2 years and then sell it later.

You need to invest all the capital gains (not just the net sales proceed). Best route is you go to CPA and got your number from them.

100% Tax Deferral if you don't touch the money for 10 years. 10% tax discount if you plan to withdraw on 2026. The last date you can invest in OZ is the end of 2021.

Thanks, Dave, is the cost basis equal to the date when I acquired the property (when I bought as primary) or FMV when the house moved from secondary to rental investment? thanks ...

Hi, In this scenario: The first 4 years the house is primary, 3 years as secondary and the last 2 years as a rental. If I sell the house now and do 1031, is my 1031 deferred tax will be 100% of the capital gain or will it be 5/9% ?