All Forum Posts by: Dennis Guinto

Thanks for the response! The AirBnB plan was just and idea and we are not stuck on it. My dad and I prefer renting it out long term after we renovate the property. Next step would be finding a lender and figure out which loan type.

Good morning,

I want to bounce some ideas off you guys and perhaps get some feedback. Here’s the situation:

My father owns a 2 Bds/2 Baths house (1190 sq ft) in Pasadena, CA. Nice little house in a nice neighborhood and approximately 25 min from downtown LA. It needs some upgrades and repairs before we rent it out or use it as an AirBnB. So my plan is to sell a different house I already own in WA. I want to use the money from that sale to pay for the renovation or as a down payment for my father’s house in Pasadena (if I decide the purchase the house). My dad and I had a few ideas on how to go about our plan.

Path 1:

I buy the house from my dad and use the money from the sale of my house in WA as a down payment. He gives me money for the renovation. We renovate it and rent it out or use it as an Airbnb. One of the reasons my dad prefers this path is because he only stays in this house once a year for a month or two. He lives overseas with my mom and doesn’t want to take care of it or worry about it.

Path 2:

My dad keeps the house under his name and I use my money from the sale of my house to renovate it. Once complete, we rent it out or use it as an Airbnb.

Questions/concerns:

What are some pros and cons with buying a house from my dad?

Rent vs Airbnb

I’d prefer renting the property out but with Airbnb we have the option to still use it when my parents are back in the US or I’m in town.

Background:

my dad/mom live overseas and stay in the house once a year for 2-3 months only. Once renovated and rented out they will stay with family when visiting the US.

I currently live in AZ (military) and stay in the house for a week or two once a year.

The house as it is, is approximately worth $850,000.00.

I’ll make about $100,000 profit from the sale of my house in WA.

Thanks for your response Ashish! I have a follow on question. Is there a time frame for the sale of the house or does it have to be exactly 5 years from when I bought it. I hope my question makes sense lol if I purchased the house on 14 February 2017 do I HAVE to sell it on 14 February 2022? Or can it be in the same month? Thanks again for your help.

Good evening,

So I have a question about this rule. I am looking into selling my house. I bought it in February 2017 and lived in it until February 2019 (2 years). I rented it out since mid February 2019 to this day. Now in order to get the tax exclusion I have to sell the house no later than February 2022. Selling it after February (i.e. June 2022) will prevent me from getting the tax excluding, correct? Thanks in advance!

Good morning,

Hope all is well! I’m reaching out to you you guys hoping to get some advice maybe guidance on what to do with my property.

Background: I bought a house in WA state in feb 2017. I lived in that property for two years and rented it out since feb 2019. I still owe about $205,000.00. Upon talking to a friend and real estate broker, the property is valued at about $350,000.00. I am active duty military and currently live in Arizona. I am considering selling the property but I’m still open to any suggestions. I make about $150 monthly cash flow. I have a property manager who takes care of the property since I live in a different state. I prefer keeping a property manager since I frequently have to attend schools for long periods of time and I’m subject to go overseas too.

My question is what should I do with the property? Sell it? Continue renting it out with the help of the property manager? Get rid of the property manager and manage it myself?

Any advice or guidance will be appreciated.