All Forum Posts by: Ian Middleton

@Barrington Smith I'm busy with a 1965 full house remodel in VA. You should have the sewer line checked as cast iron will probably be toast by now. Also electrical system/panel/wiring may be seriously outdated. These older properties as not just cosmetics and may need major surgery.

@Bruce D. Kowal Thanks for your response. My CPA gave his opinion on the matter but being somewhat of a nonconformist i thought it would be prudent to get some external opinions on the matter as it has meaningful implications. As it turns out my CPA was correct and world order has been restored. 

Thanks for the feedback and not what i was hoping for, but hey Death and Taxes right!

I looked for the answer to this question in the various threads but could find an unequivocal response, so for the avoidance on any doubt here is my situation/question. I purchased a fixer property for all cash around 5 yrs back (costs all in of 140k and sold for 215k in TX), sold it and did a 1031 into a SFR all cash purchase just over 2 yrs back. Second property purchase price was 275k (so added some other funds to make up the total figure), and potentially looking to sell around 315k. Assuming this is the case (and excluding agents fees, costs etc) would the capital gains tax on the second property be 40k (gain since the purchase 315k-275k), or would there be some kind of recapture from the first 1031 exchange. Thank you very much in advance.

I believe you are talking about two different points in your original post. Raising interest rates is supposed to cool demand (cost of owning becomes more expensive), and cooling demand will tend to reduce prices over the longer term (less people can afford the prices so less interest and reduced prices required to entice buyers back to the market). This is a general economic theory anyway and whether it works or not is another topic altogether. Having said this i think we can see that the intended cooling effect of raised rates is starting to take effect in the market with DOM going up and price reductions being seen on listed home more often (general terms i know).   

The second part is the scarcity of land and/or properties in a specific location. Some markets such as Manhattan, Rio (Brazil) and Cape Town (South Africa), to name a few, just dont have any more land that can be developed making the existing properties more valuable and desirable due to their location. This will always be the case in Real Estate (location - location - location) and there is nothing much that can be done about it. In 20 years from now people wont believe that you could purchase a 2 bedroom condo for $1.5 Mil (guessing the price here) when they are worth 12 Mil at that future time. 

These are just my thoughts and I am by no means an economist so feel free to comment.  

Just closed on a primary residence in Crozet today...its a fixer upper but has good bones.

Hi Justin, we are moving up to the Cville area next spring and would be glad to meet up with other RE investors in the area. From what ive seen in the thread the market is pretty crazy there at the moment. I've been actively investing in the Houston market for the last few years (BRRRR) but have put the brakes on as prices have just gone nuts.

Hi Ronnie, which part of Houston are you working in?

Thanks for the info guys, much appreciated and I have enough to get this sorted now. 

Hey Guys, I have a SRF with a stable family who've been living there for about 18 months now. They have recently requested to get a small dog and I am in a quandary about this. My inclination is to allow this provided the appropriate steps are taken. 

My thinking is:

- Renter to provide proof that dog has had its shots.

- Refundable pet deposit of $500 to be paid upon getting the animal. 

- Monthly pet rent of $25 to be added to the rental price (currently $1375 for 1200 sqft 3/2)

- Some kind of insurance to be taken out to cover any liability (I'm a bit stuck here, my preference is that the tenant gets this covered under their renters insurance - so they swallow the cost). 

Any input (from people who have experience in this matter) would be appreciated.