All Forum Posts by: Caroline Gerardo

@Sean Ross  detail in his question is he wants to use an OWNER Occupied loan type, with 5% down. 1031 does not fit with a conventional Owner Occupied loan approval.

I doubt $100000 is a farm or a business. This is why I asked about the business use of the land.

1031 is for a business or rental, hard to imagine how $100000 raw land fits as business... Then buying with 1031 can't be owner occupied with low down payment. 

What is the tax basis for the lot and what income tax will you owe?

Selling a lot takes time, you maybe won't find a seller of a duplex wanting to wait for you to close in this rapid seller's market. 

Also a bank statement loan if you deposit income into one account can be used as income piece.

1031 is for a business or rental, hard to imagine how raw land fits... Then buying with 1031 can't be owner occupied with low down payment. 

What is the tax basis for the lot and what income tax will you owe?

Selling a lot takes time, you maybe won't find a seller of a duplex wanting to wait for you to close in this rapid seller's market. 

Can you get permits for what you want? Can you get construction financing? 

Torn down because the area is that bad or the building had something wrong?

My thought is the possible rent value has no correlation with raw land value. 

Dad owes how much?

You make $5300 month and the PITI PLUS HOA on Dad's house is $1365 sounds fine BUT

How much loss do you show on 2022 2023 IRS?

payment on your debt is $500?

Do not cash out IRA and owe 30% taxes on the early withdrawal.

Yes and they inspect. Think of it this way you are creating living space and it needs to be safe.

I mentioned there is the possibility of losing the lot. If you lose the rip rap, the house and the dirt go, then you do not own a lot. I would not self insure, unless you have billions to lose.

I start with thank heavens it's not California where you are not allowed to do anything to preserve your real estate against the ocean also known as the Coastal Commission. You need to read more about Florida CCCL and understand that politics can change and become the same as CA.

You will always need flood insurance. Flood insurance might not be available in the future. There's that pickle.

You can raise up the whole house on piers, but expect it to crack and settle.

You can build sump pumps and automatic Moen water sensors to trigger the pumps but if the water rises fast it won't save the ship, and power will probably be out so you need a generator.

Do not expect or plan that anyone will fix the seawall, it's on you and the problem is will your neighbors all have millions of dollars to fix at the same time that you need to?

Research what IRMA did to the city. FEMA didn't bail them out.

Expect more hurricanes. You will lose the roof sometime in the next 40 months. Cost to replace $20000 BUT it will take months to get the materials, so the cost is $29000. Before you buy know where you can get the roof materials in Texas and truck it there as a plan, and pay contractors from out of state.

Did you get an insurance quote? Insurance was the first thing to investigate BEFORE making the offer. Ask seller who their carrier is, start there.

If the rip rap is stolen by the sea and the house caves, will city planning even allow you to rebuild? Your lender is going to ask for guaranteed replacement policy because you probably cannot rebuild in that case, going to be a catch 22.

Been there, not in FL in CA.

@Colleen F. to change from a human real person vesting of any type to an entity is a sale, in every county the deed is a transfer deed as a sale not a family transfer. The assessor sees the change some time between 1 months and a year and bumps the property tax to their current market value. Also when you file the deed change you pay transfer taxes. So there is both.

In some states property tax increases are limited by laws ... Like Prop 13 in CA which of course they keep trying to repeal.