All Forum Posts by: John B.

My family and I will be moving to NW Puerto Rico. We have some real estate (commercial and residential) in Colorado and are interested in finding more properties in NW PR. But, we also wonder if there is a certain type of business that we could buy and move to PR to take advantage of the tax incentive acts.

Anyone have any ideas?

Brandon: A MTM lease makes me nervous - what if he just calls it quits and I'm left finding a new tenant? I guess a 90 day notice clause would help that. Would a renegotiation of a new lease as part of the sale just have to be in good faith on the new owners? Is it unheard of to have escalating MTM rent in order to insure negotiation happens in a reasonable time?

Vichelli: I've thought about it, but the owner has been pretty hands on and I don't know anything about running a restaurant.

Here is my situation: The lease of a restaurant tenant is up at the end of May. We had been in negotiations for a new lease but today he has told me that he has received a job offer too good to pass up and he will be selling the restaurant. He has asked me for month to month terms for until his business sells. The restaurant has steadily grown its business the past 5 years since opening and is both profitable and popular in the town and for the tourists. I have an assignment clause where he needs my consent for any assignment.

I have some ideas, and I've tried to do some research but it has proved difficult to find good guidance. I really have no clue and need some help.

How would you handle this?

I am new to commercial real estate and am considering buying a building that needs some work. I've renovated SFHs before but I am not licensed. I am wondering how I can get away with doing most of the rehab work myself on a commercial building. Are there restrictions/regulations on what an owner can do to a commercial property?

I am in the same position as Sai T. - new to commercial. One thing I haven't been able to figure out is what the difference is for renovations on commercial buildings vs SFH. I would like to improve the commercial building that i am considering buying and would like to do a lot of the work myself. I am handy but not licensed. Could I do a lot of the work myself or would it all have to be done by licensed contractors?

Thanks Wayne, this is a big relief. Now I just need to figure out how to do the recapture tax. At least that will be much less.

I am selling a home that I have lived in for the first two years of the last five year period. During the most recent five years we have been renting the house out. What are the tax implications for selling the house?

Do I pay 3/5 of the capital gains tax? None of it? 

How does this work and where does it tell me in the IRS code?