All Forum Posts by: Gene D.

@Larry T. Your calc's are roughly in line with mine, thanks for sharing.

@Dave Foster

Thanks Dave, though isnt 1031 very limiting?  Has to be purchased within a specific timeframe, equal or higher value, etc?  Any tips or detail?

@Phil Hong

Thank you, straight to the point!

@Allan Glass

Thanks for the response.  Cute quote from your professor, though much like investing in growth vs value stocks, there is no one correct answer.

"I don't understand why someone would sell an appreciating asset" - answer is opportunity cost.  $300k equity earning less than potentially available elsewhere.

"1) consider leveraging your assets to buy more" - I am, hence the questions on the BP board:), would love to hear any advice you may have on how to optimize this process.

"2) if you must sell, 1031 exchange to defer all taxes on sale." -  My understanding is that it has to be an equal or higher value property, which I would be looking to get multiple lower priced units instead, there are multiple other constraints as well.

"BTW, Gene you have it backwards, you buy for income in the short term for wealth or ROI in the long term. For a more detailed explanation visit one of @ben leybovich posts. " - I'm afraid this point is comparable to a debate about the chicken and the egg:)).

@Neal Collins

Thanks for the opinion, I'll definitely look into the specifics tax implications involved.  I'm certainly not worried if it's 27.5 (depreciating life of unit) divided by 1.5 (years as investment property)...my concern is if 30% of the profit is taxable due to owner occupied 3.5 yrs vs renter occupied 1.5 yrs calculations outlined in my prior message to you...just wondering if someone knows the correct rule that will be applied by the irs.

@Vincent Crane

Great suggestion, I've been considering this as well vs just getting hard financing.  Any thoughts on pros vs cons?

@Jeff T.

My endgame is strictly ROI in the short term and passive income longterm. I've spoken with multiple agents around me and the general consensus is that you can still flip things with ~15% gain within 4 months. If I can put 3 of those deals together in a year, that is potentially a very good way to go. Obviously there is the added risk, and I still have my day job. Ultimately I'd like to have enough passive income to not have to rely on my job, but in order to do that I have to put together enough capital to purchase more units. The path of least resistance seems through a couple of flips to move in that direction.

Where in FL are you investing?  Any insights on that market or anything else outlined above much appreciated.

@Steven Picker

Very true, I did think about potential appreciation in NY.  Having geographical diversification is another benefit.  When you say: "cost of entry in Florida is so much lower that you can easily cash out some investment money for Florida", are you suggesting to get the property appraised and pull the equity and use that as my investment capital for FL?  If I understand you correctly, can you expand a bit on the mechanics involved?

@Kevin Mizuno

Thanks Kevin.  To avoid being redundant, please have a look at my reply to @Steve Vaughan and @Neal Collins.

Any input much appreciated.

@Steve Vaughan

Can you shine a light on my assumptions outlined above in the response to @Neal Collins regarding section 121 exclusion?

I would also agree that there are advantages to being local, howeve, having lived in the unit myself previously I've buillt close relationships with neighbors and they can always let me know if anything is going on, there is also a maintenance guy on site and the management co keeping an eye on things, proximity to the property is not a concern in this case...unless you can suggest something I am not aware of as pary of my consideration.

Thank you