All Forum Posts by: Dennis Maynard

Go Cowboys.  This is a comprehensive question and no quick answer.  As far as the investing, sounds like rinse and repeat.  Corporate structures, get the help from an attorney or do some reading entities and structures.  Accounting may play a factor.  As far as manage, we all need help from time to time.  You need to do some research on property managers for the properties to determine if it is a good fit.

Short answers.

Solar in Maine?  Prob not the best option.  Look into tank-less water heaters.

Check your regulations with the home owners association.  they may not allow it.  Generally this is a density issue as well.

So I'm guessing this is your first time doing a land development.  The answer with your question is you need to check on the zoning.  If you are looking to rezone, then you should take a look at similar nearby developments for clues as to what the county will allow.  In addition, you need to get a good land use attorney to draft a letter of opinion for development.  This will also inform you and your investors of the potential and risk.  Once you have your research together, then you would need to concept the idea (target market, buyer profile, product type, architect concept rough drawings) and then approach your investors.  This isn't cheap, but some professionals will give you some freebies along the way to get the job.  But don't abuse it.  You can't go back to the well 2x.  That said, if you can find an agreement with the landowner that allows you to partner with them, or to have a right to purchase for a fee after you have accomplished these items and satisfied the investors, then that is the best path forward.  There is a lot of reading on this.  Land development is its own thing.

There are a lot of opinions on here.  Here's my 2 cents.  It depends on the market and the deal.  I think before going out there an putting capital at risk, take the time to study multiple markets (your own backyard is a good place to start), and analyze tons of deals.  How many?  Learn to run the numbers on at least 50 deals.  Then run a swot analysis on each.  By the time your done with that, you should have a very BASIC knowledge of a market area, and basic analysis.  All of this is predicated on what STRATEGY you are using and what your goals are.  

@Dave Foster Dave is correct so long as you took depreciation.  This is the importance of using an  accountant that understands real estate investments.  I have had clients that cannot take depreciation as it impacts their bottom line negatively personally.  Dave also is correct on the recapture.  However there is one component we all forgot to mention, time.  How long you have held the property will affect your tax rate on gains.  Two years is the marker between long term and short term capital gains.  Hope this helps.  I'm sure there will be more comments.  

No it's separate.  It is not included in the profit anyway.

Depends on your goals.  This is really a personal question.  As far as national lenders such as rocket mortgage, they will often quote outrageous numbers and then hit you when you get close to a deal.  I would say a little more due diligence goes a long way.  

Tax question - ask an accountant.

Primary residence converted to rental and vice versa requires 18 months I believe.  IRS Code, might be why you are not finding the answer.  I'm not an accountant.

I can't answer opportunity zones.  The regulations are still forthcoming.  Frankly, I'm still figuring it out myself.  It really depends on how much you are playing with and what your goals are.

Capital gains =  Sale Price - Purchase price - cost of acquistion and sale - improvements 

If you are 1031, you don't need to concern yourself right now with it.  Just use the formula above for a general guideline.