All Forum Posts by: Chris E.

The parcel is made up of 4 seperate lots, each house is on a double lot which is typical of the neighborhood they are in. I havent confirmed wether I can divide them or not, because either way I am extremely happy with the price Im paying for them. The reason they are together is because its had the same owner since the 60s. That owner lived in one and rented the other to family. The owner recently passed away and left the property to their son who lives in another state and didnt really want them to begin with. They do share a well, but are on city sewer. They offered to sell just one to me but I wanted to buy the pair.

Ah ok, I was under the impression the 1031 was the way to beat the short term capitol gains tax

I know its a question to ask a professional near me. But I figured Id see what I can get on here. Im looking at buying a property with 2 houses on it in a couple weeks. Ive considered separating them and selling one right away. Can I use the proceeds from this, tax deferred, to invest in the rehab of the other house?

Also, how would I be charged tax on the deal if I split them up and just sold one before the county got around to assessing them? Would the county just take the assessment value of the whole property and split it 50/50 and say thats what each is worth?

I'm planning on keeping one as a short term rental and for what I'm paying, I could probably sell the other as-is and get the first house basically for free out of the deal.

Good tip on the contingency of having occupants out 3 days prior to closing. Ill ad that to my contract for next time. Hopefully all goes well planning on closing in a few weeks.

I have an appt with an attorney tomorrow that will hopefully be able to clarify my options as far as wi law goes

I havent made any written agreements for anything yet other than the purchase agreement. Theres no lease in place. Only reason I'd be ok with renting it is because 1-Itll be an easy start to my first rental 2- its not a lot of money but its money coming something that I couldnt rent to anyone else. and 3- Having a renter there will keep me out and keep my focus on getting the other house done. Otherwise with the way I am I know ill be going back and forth between the 2 houses working on different things and itll take me a lot longer to get either one of them done

Im buying 2 houses. One is mid-rehab and the other needs to be fully gutted. I plan on finishing the mid rehab house first and then moving onto the other. Problem is someone is living in the other house and his family who owns the house now has asked if he can remain there, paying me $400 per month until I'm ready to begin work on the house. At first I agreed because it sounds like hes lived there all his life and doesn't mind or care about the condition of the property. But now that Ive had a day to think on it I'm wondering if theres some way that I could have him sign a waiver or some form of agreement removing me from any liability to the property? Say the roof starts leaking, or a faucet breaks etc, I don't want to have to fix a ceiling or be replacing little things, knowing good and well I plan on gutting the whole house very soon. I will find out but I assume theres no rental agreement in place between him and his brother.  Can anyone think of a way I could make this deal work to help this guy out without me being on the hook as a landlord? maybe some type of agreement where he technically owns the property and is responsible for upkeep? I know, I need to find an attorney to talk to about things like this

Thanks, definitely exciting, little scary but that comes with it. I'm definitely going to need to get on that. Because I already have several different things I need help with and have questions about. 

More info on the deal Im working on. Its a house I saw last summer with a for sale sign in the window. Wrote the number down but after looking at it closer I thought it needed too much work. I remembered it a week or so ago when I was trying to find a place for us to buy now that our house is selling. So I looked the house up, and decided to check if there were back taxes or anything owed. I pulled it up on the county mapping and find out that its actually 4 lots and 2 houses all on one parcel and 1 tax bill. So I got ahold of the owner and found out it was for sale still even though the sign was no longer up. He inherited it several years ago when his mom passed away and no longer wanted it. He lives in Indiana and the houses are here in Wisconsin. One house basically needs to be gutted, his brother is currently living in it though. Its just layered with one cheap repair on top of another. And the other was gutted last year and rewired and drywalled and thats where it sits today. Both are small houses, 1bd and 2bd. Owner has already bought cabinets, shower, toilet, sinks, vanity faucets, light fixtures etc all brand new in boxes just waiting to be installed. Newer furnaces in both houses also. Hes lost interest in driving up here and working on them though and wants them gone. Asking $50,000 for the whole deal. I have it under contract now for almost Half that.

Thanks for the tip on docusign, I used that and now have the property under contract. Amazing how the internet speeds things up. To think this morning I was about to get a contract written up and mailed and would have been waiting days for it to come back. I havent done this before, But I believe the next step is getting in touch with the title company which is what I plan on doing tomorrow. I always think of legalzoom, I need to remember to check out rocket lawyer next time I need to find a legal document of some sort

Couple more details; the owner is out of state, I live in WI which is where the property is and he lives in Indiana so I am thinking i should get an offer/agreement in the mail today to have him sign and maybe a $100 check as earnest money. For this agreement will we each need to sign in front of a notary? Or is just signing with out good enough? The only thing i want specifically added to the contract is that the offer is made on the house and all contents. Its mid rehab and there are new cabinets, fixtures etc sitting in boxes that i dont want them packing up and taking right before we close the deal