All Forum Posts by: Daniel Volk

I bought my first home as my primary residence in 2018 and then bought a duplex in 2020 which I moved into as a primary residence. The former home was rented out for a year, then we had to sell the duplex and move back into the single family for health reasons. 

For 2022 taxes, we used the reasons for selling the duplex as a change in health which meant we were exempt from capital gains (even though we didn't live in for two full years).

However, I now have to move from the SFH due to a change in jobs more than 50 miles away. But because I took the exemption above, I can't take another exemption within two years. 

I was curious if there was a way around paying capital gains on the SFH. Specifically, I thought about a 1031, but my next property isn't for business or rental, and the SFH was only used for rental for 1 year.

Thoughts?

@Dell J. I ended up using the personal loan since it was easier and much quicker. I took out the purchase price plus about 10k for rehab. I ended up spending a little more than the loan amount, but got all of it back and then some by BRRRRing it. Sold a few months ago for a decent profit on my very first investment property.

@Dell J. Yes, we ended up BRRRRing the property quite successfully, especially for our first ever real-estate deal.

Purchase: $18,000

Renovations: $17,000

Appraisal: $50,600

Refinance amount: $35,420 (@ 70% LTV)

Cashflow: $500/month

We started with nothing and ended up with a small amount of equity ($15,000) and some decent cashflow! It took a ton of work and was one of the most uncertain economic times in history but we made it work!

@Bryan Thomas thanks! I believe I

have been recommended to use them but heard they were on the pricey side.

 Hi Benjamin, 

Detroit Shoreway is an area undergoing development and rents for a 3BR/1BA might go for 1000-1400+ depending on finishes and will definitely be increasing over the next few years. 

Hi all,

This will be my first year filing taxes with my rental properties so I am looking for a CPA who also invests in real estate. I self manage my 4 units and have a property management software which helps organize receipts, expenses, etc. My wife and I did multiple BRRRRs and started house hacking this year which are probably not the easiest REI strategies to figure out for tax purposes. We have several questions about what we can deduct for our rentals/business vs personal, or possibly neither. I am looking for a local CPA to sit down with, discuss organization of documents, and proper approach to filing as well as actually file our taxes.

I'd like to revive this conversation and see how things have changed, specifically over the past few months. I am getting ready to rent out my single-family home in Ohio City which has been in high demand and has very high rents over the past several years. However, over the past month or so I have seen rental prices drop in the neighborhood and have seen some units sit vacant for a few months now, even with the lower prices. One factor could be that interest rates are still low which are encouraging potential renters to buy instead. 

Has anyone else seen these similar trends in neighborhoods near downtown (OC, Tremont, Detroit Shoreway, etc.)?

@Brittany Woosley Congrats on the deal - you make it look easy! Also, it takes a lot of guts to pick up and move across the country to start on this journey. I did my first property as a BRRRR in Cleveland around the same time as you.

@Steven Wilson that video was made 11 years ago... shows how outdated your views are. Visit now and you'll see a world of difference which proves my previous point about appreciation.

Cleveland may have had a declining population for the last 60 years (we were one of the largest cities in the country in 1950), but for the first time since 1950, our population has not declined in recent years. When the 2020 census is officially reported, I believe we may actually see a population increase. It's fine if all the Columbus diehards stay in Columbus though. Less competition for me here in Cleveland.

In other words, to say Cleveland properties won't appreciate is a misinformed statement.