All Forum Posts by: Chris S.

So i have a two family rental property in Quincy, MA.  The house is in a flood zone but fully paid off, so I dumped the flood policy last year.  Liberty Mutual upped my premium from $1600 to $2600 this year due to me removing my other home and auto policies.  I got a quote from Travelers for $760 for the same exact coverage but wouldn't write the policy due to me not having flood coverage.  Any ideas for a good insurance company in MA?  I could reduce the coverage from $550K to $400K to get the premium down to $2000, but would rather be closer to that number from Travelers.  Any help is appreciated.  Thanks!

I have a two family home I purchased in 2006 that was my primary residence up until 2014 when my wife and I purchased a single family.  We are considering selling multi family and I'm aware of tax exclusions on half of home.  Question --is the five year mark calculated with any precision?  Does IRS use exact purchase date of single family in this scenario or is there any wiggle room?  In our situation we didn't move in until a month or two after the purchase.  Any clarity would be a huge help.  Thanks!

Hi all, just looking for some advice on dealing with tenants in regards to the sale of a two family.

I have a two family.  One of tenants has been there for almost two years (tenant at will).  The other tenant has only been there for two months.  I am looking to list ASAP.

What's the best way to work with tenants in regards to the sale?  One agent I spoke to recommended that I give them a deadline date to be moved out by.  But then i get a bit concerned if we have trouble selling it.  Should i be offering any concessions (maybe at least to poor tenants that have only been there for two months)?  Thanks In advance.

Hi does anyone have a recommendation for a real estate agent in Quincy MA that has expertise in selling/buying rental properties?  I'm looking to list my 2 Family but trying to find someone that has experience in selling multi family properties.   Any recommendations?  Thanks!

Thanks Brandon et al.

I checked and my total depreciation since 06 is only 54,781. 

At a 600K sales price is looks like I'd have a gain of $46,391 after subtracting passive losses (and adjusting for half)

Therefore if i'm understanding correctly it would be 25% of 46,391 and then state taxes (i'm in MA so 5%) of $2320 and what about Medicaire tax--is that applied too?

Hi Brandon

1) yes the land and dwelling were separated out initially for depreciation purposes

2) maybe this was mistake but i thought first 30K was taxed?

3) passive losses were carried forward to now because I haven't been able to use as a deduction (due to income)

4) 2006.  We moved out of house in Sept 14

5) No

6) $250K ish

I've read a lot about how taxes are calculated and i'm wondering if someone can review to see if i'm on right track.   Thinking of selling two family and want to get everything figured out. 

Original Cost + Improvements = $462K
Total Depreciation Taken = $148K
Adjusted Basis = $314K
Passive Unused Losses = $38K

If Sold for $600K minus 4% = $576K

Gain = $576K minus $314K  = $262K

Since half was primary residence within allowed timeframe Gain = $262K *.5 = $131K

Gain minus Passive Losses = $93K

Recapture Dep Tax on $30K @25% = $7500
Capital Gains Tax on $63K @ 15% = $9450 
State Cap Gain of 5% on $63K = $3150

Total Taxes = $20,100

Amount Cleared = $576K - Current Note - $20,100

Seem right or am i off anywhere?

okay Jon--sending you PM

I have a two family in the Boston area.  My wife and I have been considering selling it.  Both units are currently rented.  I wonder--is there a good way to try and sell a house with tenants?  I don't want to list it and have them move out.   Do some investors buy sight unseen based on cap rates?

And as for the house --it's in Quincy--south of Boston --walking distance to public transportation --right in Quincy Center--there is a major development under way.

Current Rents $39.3K a year (probably a bit low still)

Taxes/Insurance $11K a year

Water Sewer $1200 a year

I've never had a vacancy in 10+ years but accounting for 5% vacancy 

this gets to NOI of $25.1K per Year

Asking Price:  $630K.  

Cap Rate = 4%

okay i'll check out --thank you!