All Forum Posts by: Account Closed

The only part I don't understand is the depreciation tax. It was a primary residence for 9 years and a rental for 7. How do they calculate that? The 25% is of what exactly? The profit? How do I know how much the depreciation was ?

I hope you mean 15%

we are selling a property (rental for past 7 years) and need some guidance on how to calculate Capital gain and depreciation. Property was purchased for 210.000+closing costs (about 3.000) in 2001. In 2011 it was converted into a rental (relocation). Since then we refinanced (cost about 2.000) and spent about 15.000 on repairs. If we sell it for like 290.000 and the real estate agent charges 4.5 percent +closing costs, how much would be the taxes on the depreciation and capital gains? as far as I understand we will only pay tax on the difference between the 210.000+costs and the selling price. The difference between the 210.000 and whatever I already paid of on the loan is ours tax free, right?

Also, if I sell for like 300.000, and buy for 300.000, but sell again in like 2 years for the same 300.000 (no profit) do I pay capital gains on the first sale, the second sale or both? This is all confusing.

What happens after I move in, live there for like 2 years and try to sell it? do I pay capital gains or is it considered primary residence then? How does the depreciation recapture work? if I sell this rental (7 years of depreciation) and buy a new one but sell it after 2 year, do I pay depreciation of 9 years or just 2 years? When selling and buying do I need to keep the same ration? 50% mortgage and 50% equity, or can I invest cash and lower the debt/mortgage part of the purchase price?

We have a property in southern California that we lived in for 9 years, but was a rental for the past 7. We want to sell it and would like to buy a primary residence in the next 2 to 3 years where we live now (orange county or somewhere else in case we move). Should we just pay capital gains and invest the money from the equity? do we have to pay capital  again if we sell the investment in 2 or 3 years? I read about the 1031 exchange, but we don't want to buy property now. We just want passive income without any hassle or stress. I saw the DTS, but how does that work if we still have a mortgage for half the purchase price and can we sell the DTS whenever we want (2 to 3 years). Can someone explain like you would to a child. I read the posts about DTS and didn't understand how that works.

How much do they usually offer below market? Redfin was 25.000 below market value with almost 20.000 (7%) in fees. 

I know that if we sell with a conventional realtor the commission is between 4.5% (lowest we could find with Redfin) and 7% (first realtor we contacted) and that half goes to the sellers realtor and the other half to the buyers realtor. RedinNow instant offer charges between 7% and 9% (not sure if it gets divided). My question is what happens if we sell it straight to a cash real estate investor. Are there sellers or buyers commissions or do we save on that?

Our Condo is in Escondido. 

We have a condo in North San Diego that used to be our primary residence, but due to relocation it has been a rental for the past 7 years. We don't want to be landlords anymore and want to sell it. Should we use a normal realtor or just sell it to an investor? It needs some repairs and we really don't have the time or money to do it ourselves, because we live more then one hour away, but for the realtor it really has to look good. Realtor says it's worth 299.000 but might take a while to sell in this market. We got an instant offer for 276.000 where the agent charges 7 percent. Should we just take the offer or take the chance with the realtor in this market or find some real estate investor that can give us a better price? Also we have a streamline FHA loan at 3.75 that is assumable. Should we mention that to a prospective buyer or is that just going to be a headache because they will have to put down a large cash payment? We really have no clue what to do next. Is there a marketplace for rentals/investment properties?