All Forum Posts by: Hunter L.

Hey Russell Brazil thanks for the advice. Which locations in and around D.C. would you say are best suited to force appreciation in SFR's? My objective is to improve the property and hold it as a rental. Thanks for the input!

I'm looking for a fixer-upper townhome to house hack in Loudoun or Fairfax county. The plan is to make improvements and rent out rooms. The goal is to be able to force some appreciation and reduce living expenses.

Agents, wholesalers and bird dogs feel free to PM me.

Criteria

3 Bedroom townhomes in need of light to moderate renovation

ARV: $275-350K

There's nothing wrong with leaving some money on the table in the short-term to win over the long-term. Just my two cents....

As @John Thedford pointed out above, proceeds from the issuance of debt (the loan) do not constitute income and therefore are not taxable.

Consult with an accountant/attorney who is familiar with your specific circumstances before assuming there are ways around the capital gains tax. I wouldn't take tax advice from your RE agent.

@Eric DeVito If the need to sell isn't pressing and can wait another 10 months, it may make sense to just sell then. You'll save on the capital gains tax and the net investment income tax.

If you come across a good-looking deal on a 2-unit in the meantime, a re-fi seems to be a good option as @Dave Foster said.

*Not tax advice*

@Eric DeVito it depends on your personal situation/motivation for selling the property right now.

The savings on the capital gains taxes imposed on your~$215K gain could be significant, especially when leveraged into the next property.

Originally posted by @Eric DeVito:

@Erick Hernandez Thought so, thanks for the reply. So I might be wrong, but this is what I am thinking. I am going to use the VA Loan on say a 2 family home. I make $100,000 net profit from current SFH that I am selling. In order to avoid capital gains I have to basically roll the entire $100,000 into the 2 family home? I would really like to do 0% down via the VA Loan and use the $100,000 for renovations to the 2 family home if need be and also any left to leave in savings or use on acquiring another property. Thoughts?

Yes, all of the net profit from the sale of your current property would need to be re-invested (into another like-kind investment property) within 180 days of the sale in order to qualify for 1031 treatment.

Any proceeds not re-invested would be taxed at long-term capital gains rates.

Edit: Did not realize this was your primary residence. As noted above, the 1031 exchange is not available for use on your primary residence.

Welcome Bill Papanastasiou ... congrats on the first two deals

Will anyone be at the Caza meetup in Reston on Tuesday (6/7)?