All Forum Posts by: Daniel Burant

Quote from @Michael Plaks:

@Daniel Burant

Your duplex is a separate discussion, so let's ignore it here. With your current residence, there're two issues.

1. Correctly calculating capital gain. How you funded this house is irrelevant, including the down payment. The gain would be the difference between the sale price today and the purchase price 6 months ago, minus closing costs on both ends and minus the cost of remodeling in between. Possibly it's not a large number.

2. Need to know the reason you're moving out, i.e. what specifically did not go according to the plan. Depending on the reason, you may qualify for a tax-free gain. For example, if you're moving out due to unforeseen job change or family event.

Thank you for your response and the clarity on this Michael. 

Knowing that the capital gain is only from purchase price to selling is great to hear. I know once we consider commissions, closing fees and remodel costs, it should definitely bring the taxable amount down by quite a bit.

The reason for moving back has to do with the constant slew of issues we experienced since buying the home (most of which has been resolved now, but mentally a lot of damage was done.)

1. Upon moving in, we found a carpenter and infestation in the bathroom and ants crawled through our house all throughout the winter. This has now been resolved.

2. We discovered we also had a flying squirrel infestation with them living between our walls. We have since removed all of them (caught between 12-15), and closed up all exterior gaps to make sure they don’t have any other entry points.

3. After dealing with the Squirrels we started discovering mice living in the walls as well. We have since killed multiple and haven’t had any activity since.


We also discovered some leaks in the galvanized piping which we have fixed for now.

The totality of everything has made us regretfully decide to sell the property. We’re just sick of it!

Hello BP Community. I’m kind of in a weird scenario here and I’m looking for a little direction. 

Six months ago my wife kids and I moved out of our owner occupied duplex and purchased our second property single family “forever home”. As it turned out, things just weren’t going as we planned at the new place and we decided to jump ship and sell the place to save face. In the meantime while living here, we fixed a ton of issues, remodeled the bathrooms prior to listing our place last weekend.

we accepted a very generous offer that we will come out ahead on.

That being said, I know short term capital gains taxes are in play, and I’m wondering how I can reduce these taxes as much as possible (legitimately). Given we purchased the home 6 months ago, is the down payment in play as an expense? How about putting the money from the sale into my duplex that were moving back to? If there are any words of wisdom or advice you guys would have for me to take the smallest hit on these short term gains, please respond here or feel free to DM me to talk more about your experience!

Thank you all for your help.

Hello everyone. Thank you for taking the time to read this, and give your valued advice.

I’m looking to buy my first multi family unit, I’ve been looking into the Freddie Mac home possible loan program, and working with BMO Harris bank. One of their loan advisors ran all my information to see what kind of loan programs I may qualify for, and home possible was one of them(according to the advisor). Here lies the issue, after hearing that I qualify, and getting a pre qualification certificate from the bank for this loan, I logged onto Freddie macs webpage and used their home possible average median income map, and noticed that all the areas that I’m looking to buy in are capped out at 77k median income per year. I told the loan advisor that me and my wife’s income combined is around 90k per year, and my income on its own is 55k per year. But he still said that I would qualify for this type of loan.  I’m the only person putting my name on mortgage, so I’m wondering if this loan program only takes my income into consideration, and not my wife’s(household income)? Otherwise it seems that we would be over the income limit.

Secondly, with Home Possible, how long would this home have to be my primary residence before I could legally move out, and potentially take out a conventional loan on another property? 

Thank you!

Hello, I'm planning on listing my home this May. I was looking for ways to not have to pay a full 6% commission and stumbled across "List with Clever". Has anyone ever used this service? Apparently they only charge a flat rate $3000 fee for the listing realtor (And standard fees for the buying realtor). It seems pretty legit, and they've already connected me with a realtor that I've already spoke with over the phone who seemed very competent.

Other than that, is there anything else you'd recommend for not having to pay the 6%?

Thank you for all of your opinions,

Dan.

Hello! My name is Dan.  It's very nice to meet you all. This is my first time posting on BiggerPockets forums. I'm really excited to see such a vast knowledge-base of real estate investment materials and resources here on this website (Including you guys which really makes this place special). 

Here's my scenario...

I'm 29 years old, recently married, and I own a single family home located in a nice neighborhood  that I purchased 50/50 with a partner in May of 2017. We purchased the place for $180k, did a bunch of renovations and recently got it comp'd to sell somewhere between $215-235k. Right now we owe about $172k on the house, and will be somewhere around $170k when we plan to sell it in May of 2019. I figure once our profits are split, between me and my buying partner, we'll see somewhere around $15-20k profit each. My wife currently have around $21k saved up, and plan on having between $25-30k by the time we sell the place. So lets just say we'll have around $50k in the bank when all is said and done.

I'm looking to take my first step into real estate. I've been heavily pondering the duplex approach. I've been thinking that if I could buy a place with 20% down, live in one half, renovate it, and rent out the other to cover the majority of the mortgage payment. There are a lot of up and coming areas where I'm living in Milwaukee that seem like there would be pretty good returns. Is this what you guys would recommend to get my feet wet for my first property? Or should I consider something else? I really want to be smart about this. Any specific numbers that I should be looking for when shopping for a place? Is it better for me to wait until next fall to buy when prices are lower?

I'm not looking for any super specific answers, but just looking for guidance from someone who's been through the same scenario as me.

Thank you so much for reading, I'm looking forward to your replies.

Dan