All Forum Posts by: Eric Phillips

I just want to wash my hands of this state. I’d rather invest the money into landlord friendly states at the very least.

I could build much more cash flow from the proceeds rather then just renting out one house here. The house may appreciate a bit in the future but I’m not sure of it. I’m located in a very small town and it’s not something that’s going to blow up anytime soon.  

The house is too close to my parents as well. I wouldn’t want them feeling like they need to manage it in their retirement. 

Ah that makes more sense. Seems to align with what I’ve found. So my total tax would be something like 24.3% or so. Sounds like a plan. Thanks for the info! 

Hmm maybe it is?  There’s so much conflicting data on the web about what the actual percentage is. I see that I got the bracket of 15% but on other sites it says 23-28%. 

Even if it’s 28%, that’s still a bargain to escape this state. 

Hey thanks for the replies!  Ok that makes more sense now. So I bought it for 250k and then put about 20k into it. 

So by that math I’m in it for $270k which subtracted from my $600k potential sale then it would leave me with $330k. From that only $80k could be taxed at a rate of 15% I believe. 

That’s not bad. Far less damage then what I thought there would be. Sounds like I’ll still have a great deal of cash to invest into real estate afterwords. 

I thought about doing that but to be honest, renting anything in California is way too sketchy for my taste.  The home is at its peak value for the area and i would love nothing more then to wash my hands of this state.  Kudos to anyone brave enough to be a landlord in this state. 

I could buy several homes in the midwest in landlord friendly states and profit far more as far as cash flow goes.  Thats more of the direction i want to head...im just not sure how long i have before i pay capital gains.

I think youre right on the 1031....i suppose its only for non primary.

Greetings folks,

I may be taking a job in the Spokane area which means my California home will be sold.  I owe $220k and Im very sure that I could sell it for close to $600k.  Im trying to figure out a way to avoid capital gains if i can...I think dumping all of the money into another house is one way to do it, which would mean id have to refinance to get my investment money back out.  Im not married yet and we dont file jointly so that means id have to pay the taxes...i think.

What id like to do is buy a home for around $400k ish mark in the Spokane area with 20% down and invest a large portion of the left over money.  Can you 1031 exchange that original income money?

Basically what im looking for is what would you do to shelter the money/reinvest given the circumstances?

Thanks in advance!

Hey folks,

I found a market I’d like to jump into so I want to get the ball rolling on my down payment.

Here’s what I have:
Bay Area based home - owe $222k @ 3.75% and it’s currently worth about $600k. 

I can cash out refi with no closing costs... maybe a lower interest rate soon. In the area I’m looking $20k is a 20% down payment. I have $5k cash for upgrades. I’m looking at nearly move in ready. 

I could also heloc. I’ve been researching them some but I’m not sure the risk is worth it?  

My fear is that I would buy once and not get the appraisal needed to get my funds back. I suppose that comes down to having the right team and comps being that this is out of state. 

If I can’t appraise at the value needed to get my initial investment out that would be bad news for a heloc right?  Essentially I’d be paying out of pocket to make that debt whole. 

Thanks for any help!

 Thanks for the heads up on this!  After researching it there wasnt anything that was too shocking...of course someone will always take it to the extreme.  I suppose if i provided a clean and properly working rental and the property management did their vetting of rental candidates then i shouldnt have anything to worry about unless i missed something.

 Is there a better method?  Theres definitely a lot of snake oil but it seems like a small investment for a great return...even if its years down the road.

Thanks for the input! I'm definitely looking for a good cash flow opportunities. That gives me an idea where I should look. There's definitely a happy medium...I'm hoping to snag something for less that $115k. I'm new at REI and would like to use the brrrr method to keep investing. Seems like theres tons of homes in the KC area that need a minor facelift and could prove to be good cashflow properties.