All Forum Posts by: Cory B.

@Brandon Ramsay. I was looking at 1031 initially but then realized I don't need to go that route because I won't be paying capitol gains. But, with selling I would end up paying Washington's real estate excise tax (REET) as well as depreciation recapture taxes. So, a 1031 may not be such a bad idea after all. Or a HELOC.

@Andy Freeman As far as savings, I don't have much. The bulk of my investing capitol needs to come from the equity that has built up in my Seattle house.

Yes, in another 5 years there may be additional equity accumulated.

@Michinori Kaneko Thank you for the input. These are all of the things I had been thinking when I was leaning towards selling vs keeping the house. The market in Seattle does seem to have flattened out - so appreciation is not in my favor at the moment. I'll need to look more closely at a lender who can give me a good rate on a HELOC, and weigh that against the prospect of selling.

Also, thanks for the tip about HELOC expenses being deductible against rental income.

@Todd Powell Thanks for the input. Yes, definitely does not seem worth doing a refi.

@Ola Dantis I appreciate your suggestions. If I were to sell, after closing costs and taxes I would have roughly $217,000.
What market(s) would you suggest looking in for a 4-plex?

@Don Spafford Thanks for the tip on Pentagon Federal. I'll look into them.

Yes, Seattle is an expensive place compared to some other parts of the USA. I'm glad I was able to buy low and have been able to gain equity as the market came back up.

Thanks for the offer regarding the Idaho marketplace. I may take you up on that at some point.

@Jonna Weber Great tip regarding staging prior to sale. You make a good point about investor vs first time home buyer being interested in the house. Thanks!

@Jake Alger I was not aware of the excise tax in Washington State - although I did expect to loose a certain percentage of the profits to taxes. So, WA state excise tax rate is 1.28% of a property's full selling price. And then King County adds an additional 1.78%. All told I'm looking at loosing 8-9% to taxes + commissions + title insurance + escrow. So, about $34,020 off of a sale price of $378,000. Sound about right?

@Brian Erickson thanks for the tips. I'll look into finding a better rate on a HELOC.

@Brian Erickson
It sounds like I should take a closer look at lenders and see what they have to offer. My lender's 7.5% rate for a HELOC didn't sound too appealing.