All Forum Posts by: Dane Reynolds

Debt is tax free...this is the main reason I kept the property.  Liquidity.  Thank you all for reminding me and stopping my second guessing of myself.

It's paid off and I have a HELOC on it in place. I can use that money over and over again how I like.

I shared the $368k, they asked back what the land value was, I told them $68k.  So, I think I'm good!

This has been a helpful conversation, thanks to all!

Sherry, Chris, and Nathan - All of the above are excellent feedback. I've contacted my CPA as suggested to run some numbers. Leaning towards staying the course and just holding onto it as a long term investment.

Let's say I do plan to hold it, what value do I give the CPA for depreciation?  My understanding is that I have 2 options:
1. What I paid for it + the cost of the improvements (~$200k)
2. Appraised value (can pull this from my realtor or just from internet searches) ($368k minus $68k land = ~$300k)

Should I give the CPA the higher number ($300k) or the lower number ($200k) from my options?

In October of last year I moved out of my home of 15 years in Austin and converted it into a rental property.

I originally paid $143k for the home, it's worth roughly $368k today.  It rented out at $2,100/mo as of Dec 2023. 

My current understanding is that if I keep it a rental for more than 3 years, I will be subject to the capital gains taxes on the $225k difference. 

I will avoid this $37,250 tax bill if I sell it now (I believe it's taxed at 15%).

It was my intention to hold this property for a very long time (10+ years) as Austin was been appreciating nicely, and it's cash flowing at ~$750/mo.

I don't plan to buy any additional properties at the moment. 

Making the right call here, or should I sell it?

Curious about this program also, any new updates from those who have used the service? 

Thanks!  I dropped you a PM.  Any advice/support will be greatly appreciated.

Looking for a trusted person/company to work with on an upcoming rehab property in Temple, Texas.  It's not in too bad shape, but was a smoker's house and hasn't had any cleaning done in years.

Based on a quick walk-through I'm looking at internal painting, minimal external painting, carpet replaced (or removed to get to the hardwood floors where possible), a bunch of minor repairs to things like gutters/eaves/etc.

In a perfect world, this relationship would continue to care for the property as issues occur in the future.

What's it jump to after 12 months? 

I used Bank of America and have been very pleased.  I shopped around and the only spot that was close was RBFCU; BoA matched their offer.