All Forum Posts by: Devin Powers

Welcome to the community and best of luck on your real estate journey!

Rate will of course depend on numerous factors but it’s always worth taking a second look because you can probably find better than 8.25% for a conventional loan even on a duplex. PM me if you want to look at other options!

Hi Kaushik, I am a CPA based in Dallas and have transitioned into real estate.  The short answer is yes you will likely trigger a tax consequence for selling your property.  However, the good news is since you've owned the property for over a year it will be considered a long-term capital gain which holds a much lower tax rate than if you owned it for less than a year.  There are a couple of ways to reduce your tax liability if you decide to sell within the 2 year period:

(1) If you've made any capital improvements to the house, you will likely be able to reduce the amount of capital gains tax you will pay on the property.  Make sure to find those receipts and invoices so that you can include those in your tax return.  Common types of renovations that can reduce your tax liability are adding new bedrooms, bathrooms, etc.; remodeling an existing space; replacing or adding AC, flooring, insulation, roofing, etc.  However, minor cosmetic repairs or repairs to personal property cannot be deducted such as paint, replacing broken hardware, fixing leaks or holes, etc.

(2) If you have other types of investments (e.g., stocks or mutual funds) that are operating at a loss, if you liquidate those investments to take a loss, you can use those losses to offset your capital gains.

Hey Scott - as others have said, you need to live in a place that you think you'll enjoy. You mentioned the semiconductor chip factories in Sherman and Denison (suburbs of Dallas), and I'm assuming you're referring to Texas Instruments building out and renovating new semiconductor fabrication factories, which is absolutely true. But even more than that, Dallas in general is growing RAPIDLY and is a hub for healthcare entities which fits well with your line of work.

With that being said, there are some great investment potential in Texas.  My team has helped many investors find house hack opportunities in Texas either through purchasing a duplex, triplex, or 4plex even in today's market where rates are higher than we'd like.  It's a great way to build equity and cover your mortgage payment until you are ready to move on to the next property and rinse and repeat!

This is not correct. If you're doing a conventional loan, Fannie Mae and Freddie Mac guidelines say that delayed financing will follow "cash-out refinance" pricing matrix which inherently has slightly higher rates than a purchase. If you're doing a DSCR loan, the difference in rates will vary by lender but generally cash-out refinances will result in a slightly higher rate.