All Forum Posts by: Frank DiGiorgio

I'm still looking for insurance quotes.  I just got one from Fudge for $8600/Yr and the place DOES NOT require flood insurance.  It's a $1M home on a freshwater canal.  Does that sound right to you guys? 

Waiting for a call back from State Insurance USA (thx @Stetson Miller

@Stetson Miller Got it.  And thanks for the insurance info! 

Thanks @Michael Baum, Yeah I thought about it...but what about post changeover inspections and weekly visits to the property to check for issues?  Also, need to have eyes on the ground to make sure pool maintenance and lawn/landscape is up to snuff.    

Want to volunteer?!  haha

Ok, thanks again for your insight.  Hoping somebody will know of a hybrid PM that does what I'm looking for. 

Thanks!

Thanks for the reply @Andrew Steffens Well that's very concerning.  That would take a big chunk out of my revenue that I wasn't planning on.  

Do you know for a fact that there are no PM companies in CC that offer that arrangement?  Am I looking at 20% for full service at this point?

Hi All, 

I just purchased a canal access home in Central CC. I'm looking for a PM who will allow me to do ALL bookings. They would handle pool maintenance, changeovers and emergency calls. Does anyone do a flat monthly rate to be on call and breakout the changeover and maintenance costs? That's what I had in my Orlando STR, and I'm hoping I can find the same in Cape Coral.

Also, looking for a good insurance company that hasn't bailed on Florida yet.  

Thanks in advance BP Family!

Quote from @Carini Rochester:

You really need an accountant to chime-in. (In my experience on this site, an accountant will respond with the correct answer after I've given my two cents.)

It sounds like it would be treated the same whether you keep it or apply it to your principle. Either way it improves your bottom line and is income. Not all $105K is income. You gained something ($105K) and you lost something (3.5 acres of land.) Someone has to do the math and figure out, in dollars, what you've gained, and you will be taxed on that. 

I believe you can 1031 exchange that gain into another deal to defer the taxes.

Thanks Carini!  I have a call into my tax accountant, but I guess I didn't think of it that way (gain/loss).  It sounds like there will need to be a "value" assigned to that raw land parcel somehow.  Sometimes the tax pros on this site give better advice than those paid to solely give advice on tax law. 

Monday Bump 😊

Hi All!

I purchased a farmhouse on a 5 acre parcel in Upstate NY for $375k. I subdivided 3.5 acres, and kept the house for LTR.

I sold the land for $105k and asked my lender for a partial lean release. They agreed and require me to contribute just 10% of my original loan amount of $290k. They would recast my mortgage to reflect a lower balance due, and subsequent lower mortgage payment. I could contribute the full $105k toward my original loan and increase my monthly revenues, or I could pocket and reinvest the $76k ($105 minus the required 10%). I know I would need to pay income tax on the 76k if I took it, but what are the tax ramifications if I apply it toward the principle. Or am I missing another strategy all together?

Thanks all! I really appreciate your input!

Thanks everyone for your thoughtful replies! I appreciate all of the insight.