All Forum Posts by: Sean Carroll

well as far as capital gains tax it depends on how long the property has been held. If it is less than a year then it is your normal tax. For instance I am at the 25% tax bracket. so 40,000x .25 = 10,000 in taxes. then 40k-10k = 30,000 in profit after taxes. I would say do that in order to calculate the federal taxes. then also do state tax specific as well. 

https://taxfoundation.org/2017-tax-brackets/

https://www.fool.com/retirement/2016/12/16/capital...

also look at maybe a 1031 if you have another property you are ready to move one.  does this help at all @Eliot M.  ?

@Anthony Angotti when you say is takes a little more patience and attention

@James Riggs From what I have been told is that you want to make sure that they manage the property them selfs, so that way they ar involved long term and don't just collect a paycheck after doing a bad rehab and leaving you with the mess to deal with.  am getting ready to head out to Indiana later this month to meet up with a company that does just this. I will keep you updated if you would like?

@Neil S. As far as places looking to invest for buy and holds I would look outside of the Bay Area unless you have a lot of money to put down on the property. I would also look to see if you could find multi-family properties that the seller is willing to carry the note on (finance). I feel that seller finance is a win-win for everyone. If you're interested as well I would possibly look into a vacation rental in South Lake Tahoe. For single family homes maybe try the Foothills or Sacramento Valley  area. Hope this helped

@Jo-Ann Lapin and @Brent Tarnow would it be alright if I PM you as well to get contact information?

@Kenny Tan two things. One is I would wait to see if this tax plan passes or not, I think we will have a clearer answer within the month. Also have you ever thought about seller finance? Benefits are is you keep a nice steady monthly income which is what it looks like you are doing, with out the risk of 

@Jen L. My rental is not in the bay area, however my move out cost are not that much. If the prior tenet ruined the current microwave charge them, if its just old then you can find an over the range microwave for $200-300 then add another $100 for install if you can not do it yourself.   Painting is hard to tell you since I do not know your property type but should be only somewhere around $2,500 for painters to do it for you. Now fireplace is very difficult to say because it depends on the extent of the damage and what needs to be replaced/repaired. If the fire place is not a huge selling point, which in the bay area I don't know why it would be, then I would put into your lease that the fire place is non functions and to not be used and if used the tenets will pay for all repairs related to the damage cause by them using it. Does this help at all?

DeNay Ramsey just to confirm your question is should you build another house? I would say yes go for it, also please let me know what your cost of that would be per square foot. The only concern I ha e is if the city wants to inspect the current house you could run into problems since there were add ons without permits. What would your numbers look like? Cost, mortgage payment, and rent? Also don't forget about the 50% rule to be safe.

@Jen L. can you tell me exactly what you're having to fix and replace and why? 

 Yes  you would need it to be an absolute necessity if you are wanting to avoid flying back and fourth. I recommend getting some recommendations of companies over BP as well as yelp. Line up, say, 3 and go talk to them and finalize that you will be using them. The only other way is while you are there I would line up a handyman, contractor, plumber and cleaning service but then you would have to go back when the lease was up in order to let people view the property.