All Forum Posts by: Jason Sung

1) there’s probably zero chance you need to do a 1031, you’re just tying to save 15% capital gains tax on your PROFIT, AFTER selling costs. So if your property went up 10% in the one year since you bought but it costs 10% in closing costs to sell, you owe nothing.  

2) if you hit the lottery and the property is up $400k in one year, move back in to it for one year and you’ll save 100% of the taxes, instead of just differing them.

3) for future reference, pretending this is about a property you rented out for 10 years and is up $400k. Yes, your plan is fine. You must purchase as much as your net sales price. (What you owe and what you paid don’t matter.) and you must use any amount of above your  current debt as a downpayment. You can’t keep any “cash”. AND you must not touch the cash. You must have a QI like @Dave Foster involved before you close. 

@Jason Sung   I very rarely see 3-4plex in Collin County.  Some duplex.   I think #1 there just probably isn't much.  #2 what there is, doesn't trade hands that often.

I only show one 4plex sold in Collin County in last 2 years and purchase price was about $1.1mil.  So that cuts out most house hackers.  

Due to purchase price vs rent, in my opinion and quick math your owner occupied unit would need to pay full price or more portion of the rent. So many people have in their mind that the 3 units would cover the full PITI, but rarely do I see it (rare like almost never) and then you get to live for free. That's what the old podcasts suggest.

Probably your best bet at house hack is buy an older 4bed 3bath in non-HOA neighborhood in Plano or McKinney and rent bedrooms if you want to live cheaper and have someone else pay your mortgage. Just depends on what you can qualify for as far as purchase price. 5 bedroom probably works even better.

You can definitely find SOME multifamily in central Dallas, for less than a mil. I found my first house hack (a fourplex) in a lovely area of older homes, right on the edge of Bishop Arts and Kessler. The neighborhood is called Kings Highway, and it's probably a 5-10 min drive from downtown Dallas. The neighborhood is a mix of single and multifamily, so there are several Duplexes/Triplexes and even a few Quadplexes. It took me over a year to find it, and I'm paying way more than my tenants right now (partially because of my mortgage rate), but cash flow wasn't my goal- right now I want to build as much equity as possible. Super happy with my decision to move to Dallas from NYC, the savings in taxes alone made it well worth it financially. Good luck!