All Forum Posts by: Maria Bocanegra

hello, i am trying to get the numbers correct here - what is the tax consequence %/share/portion for living in a  replacement property purchased with 100% of 1031 funds? Lets assume I have 100k of 1031 money.

My thought is to purchase a replacement property - in this case a multi unit and live in the smallest unit and rent out the remaining units.  Lets assume its a 3 unit flat.

what is the tax consequence? is it the capital gains rate at my income level of 33% x 100k = tax boot/consequence?

thanks!

@Crystal Smith - yes your points are all spot on - i struggle with accurately gauging whether i think i will for sure cashflow more in a re-sell scenario vs. the cashflow on a re-fi vs. breaking even on either scenario.

as far as house hacking, i listened to the BP podcast w/ Brandon Hall and visited the 1031 forum here and as far as I can tell, i can house hack and my tax consequence is pro rata in relation to the portion i occupy. 

Chris Sweeney if I understand this, you're saying buyer transfers to entity and then that entity resells- as a legal work around the 90 day limitation as entity was not a party to that agmt?

Wayne Brooks yes but is buyer committed to the bank approval letter... on any such restrictive resell term? It may be "common" practice but where is a buyer contractually obligated?

Hi all What are standard list agmt terms when selling an investment property? What are ideal terms? I have an agent proposing certain terms and I'd like to get these terms here at BP. One of the terms proposes that agent can sell property for 185k if he can sell it now (via off market, other investors, etc). Our conversation, however said we would list the property in May for 200k. (It would need some minor upgrades for that price). He said he thought he could probably find a buyer at 185k soon. My concern is - what is the incentive for him to wait longer to get me more money and where his commission would not be that much greater Any insight as to what standard listing agmts look like and do/do not contain is helpful! Thanks! Maria

Wayne Brooks - when or at what point in time is the "approval" letter sent out by bank and can a buyer back out if terms are unacceptable or create a financial burden on buyer? (I assume the approval letter is not the same as the seller acceptance of an offer and I assume the approval letter comes after an offer is a accepted by seller and after the bank has approved the price.)

Also - I would welcome any other options I perhaps am not seeing! Thanks!

@Kimberly H. @Kyle Doney all GREAT ideas - will look into the group this week and will start asking fellow investors here in the area!

I thought I'd see what my BP community has to say as I am quite undecided - so here goes. I have a rental property in the metro area of Denver, CO currently est. value sits at around 200k.  Initially, I had planned to sell the property and 1031 the money in order to purchase a multi-unit here in Chicago, Il. 

If sold, I would likely net around 70k. If i put the entire 70k toward a down payment on a 400k multi unit, that would make total monthly costs around $2,200. Assuming there were 3 units or more (+garden), I could house hack and likely cash flow at least $300/mo.

If re-financed, I would likely net around 32k. If I put the entire 32k toward a down payment on a 400k multi unit, total monthly would now be $2500 or so - likely still able to house hack and it would be VERY close on the cash flow (depends on a myriad of factors).  I would also be able to retain the Colorado property and cash flow about $500/mo with the new monthly mortgage. 

My research for the Denver metro area suggests, rents and home prices will likely continue to rise at least for the next year or two.  My only complaint with the Colorado property is that its so far away and makes landlording/managing difficult at times. In the 10 years I have rented this property out - i have never used a property management company because it was just one property i planned on owning and I did not see the financial incentive to do so.

I have also "read" and "heard" that interest rates are only going up so perhaps now is the time to re-finance but I tend to think that non-owner occupied properties will largely sit at the same rate anyway - right?

BP community - what would YOU do? Thanks!

Glen Doering http://www.leagle.com/decision/In%20FDCO%2020170124F06/IN%20RE%20AGUIRRE Basically, as I read this, the court said Wheeler (who bought the lien at a tax sale) lost its lien property interest when the debtors filed for BK and after Wheeler participated in plan repayment. After that, their lien/pty interest, which appeared to be subordinate to Chase anyway, converted to a mere contract right to get part of its $ back. The fact that it's subordinate to chase already gives me pause. Why would anyone buy a lien subordinate to the first lien holder? Anyway, let me know your thoughts!