All Forum Posts by: Debbie J. Skora

Similar to Jay Hinrichs, I find properties with military/DOD tenants have less "rent insecurity".  Those folks still get paid! (not to mention, they can get in trouble if they don't pay their bills)  My worst problem this month was a tenant who usually pays a week early didn't pay until the 30th.

That's nice that y'all feel that only a less-than capable landlord offers cash for keys,  but in the real world, it's frequently a thing for various reasons.  I am buying a property with a 12-year tenant and would rather have them leave on their own accord than have to  take them to court.  They are month to month,  but that doesn't mean they will be willing to leave just for the asking.

I am interested to know the methods some of you use to determine a fair "Cash for Keys" offer.  A month's rent? More?  Less?

Hey Stone, I'm looking in the <100K range for a buy and hold (some rehab is okay) in Houston, San Antonio, Austin and surrounds.  Saw the one you have on HIndi ...are there any more photos, and is it occupied? (sorry if this is in the listing, I've seen a lot today!)

By the way, please put me on your buyer list [email protected]

Yeah, but Goodman is a solid choice.  Had them on two different properties in Cali.  No issues!

@Dave Toelkes I did not get the impression it was entirely hypothetical. I got the impression he is considering doing this and that's why now is a good time to get good legal advice. So many people get into multi-member LLC ownership of property (which this would be, unless his partner is his spouse with whom he files joint tax returns), then want to exchange out as if they owned it themselves. You want to set up your ownership structure properly from the beginning, based upon your ultimate plans for disposition of the property, and there are many legal and tax consequences to consider.

@Mark Sewell I was looking at Beaumont, but alarmed at the crime rates!  What's up with that?  Any idea why this relatively small town has such horrible crime?

Yes @Joshua Watts is correct.  They qualify to exempt up to $500K of gain as a married couple filing jointly, and can rent the property for the last three years prior to a sale and still take advantage of this exemption.  If their gain is more than the $500K exemption (this is common in California and other high-appreciation areas) they can 1031 Exchange the remainder into another investment property.  If they just want to cash out, they will have capital gains tax to pay on anything over the $500K exemption.  One caveat on the 1031 exchange strategy worth mentioning:  particularly in a property that was a primary residence for a long time,  the longer you rent it out before exchanging, the better.  If they ever get audited afterward, they will be happy to have rented it the max three years before selling!

@David Roe important question: you mentioned you owned the property together in an LLC. How was his name "removed from title" upon closing the refi? Was the property titled in the LLC, and now it is in your name only? If the LLC owned the property and transferred it to you while giving the partner cash, that is not a capital gain because your partner did not sell a capital asset. He basically received a distribution from the LLC, which is taxed differently than a capital gain (and Not 1031 exchangeable either). This is an excellent time to talk to a tax attorney.

@Anthony Dooley I appreciate you are trying to be helpful, but being absent has nothing to do with one’s ability to make money investing in real estate. In fact, your argument about investing in “military towns that never appreciate” only supports this. For one, a buy and hold investor (a “landlord”) is not primarily looking for appreciation. He is looking for a cash flowing property, whether in the port where he is stationed, or elsewhere. Every investor has limiting situations, and it’s wise to be aware of them and have a plan to address. Read David Greene’s “Long Distance Real Estate Investing” for helpful strategies. Best of luck to you- sent with love from Ramstein Air Base, Germany!