All Forum Posts by: Jason Burr

Mario,

Great project.   You've really turned the property around.  How did you come across the property?  Was it listed or did you find it elsewhere.

Jason

Nick, I have not noticed a refi triggering a tax adjustment in Greenville County.  Hope this helps.  

@Zak Parks  Tell me a little about your rehab team.  

I thought I would toss out a scenario and see what creative solutions folks suggest that might offer the best value to a potential seller.  Let's assume the seller owns a single family house that they have fully depreciated over the years as a rental.  The landlord is at the end of their career and does not want to purchase another property and isn't interested in a 1031.  Please help me understand the tax consequences to options that the seller has.  If I were to purchase the property straight out, I'm assuming the seller would then pay capital gains tax (15% or 20% depending on their tax bracket)  on the entire $100,000 selling price.  The amount which has been depreciated plus difference of sales price.  

If I were to give the seller 10,000 cash and the seller owner financed 90,000, how would this the amount owed to uncle sam?

Are there any creative strategies to lease/option arrangements with the seller?

I want to make sure that I do my due diligence and learn as many potential strategies in order to be in the best position to guide folks through the process of selling.

I realize that folks may not be a tax accountant/lawyer and I will be running all suggestions through my accountant for review.  However, there are numerous very creative folks online which I'm sure can offer good starting points for discussion.  Chad Carson, Brandon Turner, etc. 

@Susan KnightMy best advice is go ahead and buy a cash flowing rental house!  You can read and learn for the rest of your life and you will not know enough to ease the uncertainty of the purchase.  Run your numbers, trust your numbers, but make the jump.

Unfortunately, a lot of folks can't make it past the fear.....It certainly was the hardest part for me as well...Good luck to you!

@Derek Robinson  That was my thoughts on the one I saw.  Sounds like you found a jewel.  I was worried the tax sale property would require too much capital to turn and would not produce income for a while.  We should grab lunch one day when you are down in Spartanburg.  My full time job is managing construction and property for a college in Spartanburg.

@Derek Robinson  Did you pick up the park that was for sale earlier this week that the gentlemen purchased at the tax sale.  Are all the lots vacant?  That was an interesting deal that I contemplated as well.  Were there any zoning issues with bringing new trailers in and how much time do you anticipate it will take to obtain title to the current vacant homes?  I'm not experienced in the area and choose to not pursue it.  However, it sounded like a good opportunity.

@Derek Robinson What part of SC is the park located?

@Steven Wilging, most of our properties are in Greenville County. However, I'm slowly warming up to Spartanburg County. Multifamilies are rare and finding SFHs that meet the 2% rule are becoming rare. I focus on SFH with ARV between 75-150K and I'm interested in any multifamily (outside of war zones) where the numbers work (1.2-2+%).