All Forum Posts by: Chris Burke

Chris, that’s a great question, and it’s one that tends to trip people up more often than you’d think. I remember visiting a buddy’s place in Austin years back..he had a similar setup over his detached garage and was convinced that adding a window unit and some carpet would let him count that space towards the home’s total square footage. The problem was..when it came time to list, the appraiser wasn’t on the same page. The definition of “livable” or “finished” space can be surprisingly specific.

In many markets, including here in Arizona, appraisers and agents generally want the space to be finished in a manner consistant with the rest of the home and serviced by a more permanent heating and cooling source. A window A/C might keep it comfortable, but it often doesn’t meet the standard for counting it as fully finished square footage. You might find that installing a mini-split system, properly insulating, and ensuring the finishes match the main home’s quality will make a difference in how the appraiser views it. In some places, from what I read in Forbes, even a finished outbuilding might be noted separately rather than rolled into the main house’s footprint. After all, square footage is about more than raw measurements; it’s about how seamlessly the space integrates into the home’s overall living enviroment.

If you’re serious about making that office “count,” consider checking local guidelines or even chatting with a reputable appraiser in the Phoenix area..from what I’ve heard they’ve handled properties like this before. Just curious... what’s your ultimate goal for that office space..are you looking to boost resale value, or is it more about having a functional retreat above the garage?

Thank you! Goal is to add resale value.

0 Votes

Hello, I have a property that has an office above a detached garage. The office has an A/C window unit with drywall, carpet and electricity. Does that office count towards square footage of the property? Or do I need to have something such as a mini-split system installed for the office to be considered a finished space. Thank you!

0 Votes

I have a rental property that used to be our primary residence. We used a HELOC on that property for a down payment and some renovations ($285k) on our now current primary residence.

Our rental property has a 2.99% rate and rent cash flows over $3k a month. We are paying almost $2k in interest only payments per month on the outstanding HELOC balance.

Is it possible or does it even make sense to get a DSCR loan on the rental property that will allow us to pay off the outstanding HELCO balance ($285K) and the remaining $390k mortgage? The rental property would appraise between $1.1 - $1.2 million.

Thank you in advance for any advice!

5 Votes

Charleston, South Carolina

I am looking into selling our rental property and potentially our primary residence. I need help walking through the potential tax implications of those sales. Looking to connect with an experienced tax professional to get some guidance. Thank you!

4 Votes

I am looking to speak with a tax professional regarding potential tax implications of selling our former primary residence that is currently being used as a long term rental. Trying to understand if we should sell now while we can still avoid capital gains or should we hold property as the area continues to become more and more desirable.

3 Votes

Thank you! It looks like we meet all the qualifications but will need to factor in recaptured depreciation.

0 Votes

I am looking for some tax advice regarding the potential sale of rental property.

Trying to understand what a potential tax bill may look like.

Property was previously our primary residence, having lived there for a few years, and started renting it out beginning October 2022. Looking to sell within the next few months.

0 Votes

Considering selling my off market property. Was asked if I would be open to paying a commission. What is standard protocol for commission on off market deals?

Property is around $1.3 so commission will be a nice size assuming the traditional 5-6%.

0 Votes

Quote from @Zach Wain:

@Chris Burke - Do you have other options to raise cash? How much cash do you need? The HELOC is a great option. Losing the 2.99% rate for something in the 7%-8% range would be very painful.

The reason for the cash out refi is not necessarily to raise cash. It would be to take some of the built up equity and use towards our growing family.

0 Votes

I have a property that has increased a large amount and I am not sure if I should do a cash out refi as the majority of our money is in the property and the rate is super low. Property could appraise around 1.2 million.

Bought for $450k

Loan: $400k

Rate: 2.99 (28 years remaining)

Current line of credit of $200k out on the property via HELCO (9% interest)

Any advice is greatly appreciated.

1 Vote

All Forum Posts by: Chris Burke

Chris Burke has started 7 posts and replied 10 times.

Post: Calculating Square Footage - Office Above Detached Garage

Post: Calculating Square Footage - Office Above Detached Garage

Post: Convert Primary Mortgage to DSCR on rental property?

Post: Tax Help - Capital Gains

Post: Capital Gains Advice - Sell or hold

Post: Tax Implications w/ selling rental property that was previously primary residence

Post: Tax Implications w/ selling rental property that was previously primary residence

Post: Commission Fees - Off Market

Post: Cash out refi rental?

Post: Cash out refi rental?