All Forum Posts by: Jennifer C.

Originally posted by @Basit Siddiqi:

@Jennifer C.
is the $800k-$900k and 1 million amounts after paying off any mortgage(if any)?

What is your rental income after all expenses?

I love brooklyn(raised and currently living here). I would have to assume that you can achieve greater cash-flow if you sold/1031'ed the property and invested elsewhere. The issue you have is that Denver is also a hot market where property values have skyrocketed.

Have you looked at areas near Denver that cash-flow well?

Yes, those numbers are after paying off the mortgage. And yes, Denver prices are high and climbing. Glad I bought something here too when I moved. I'm investigating all options. I just wish I had more expertise in this. I will be calling 1031 advisors but could very much use the help of someone who can help me analyze the income and tax ramifications of my various options. I'm pretty much operating in a vacuum right now.

Originally posted by @Llewelyn A.:

@Jennifer C.

Hi Jennifer! Glad to know another Brooklyn Property owner!

>>Hello Llewellyn. Nice to meet you.

There is a lot of uncertainty at the moment, especially with the Tax Reform Proposal that has been approved by the House and Senate, but has to be reconciled soon. >>

Yes. Don't I know it.

One of the provisions is to expand the Capital Gains Exclusion which allowed you to not pay Capital Gains Tax on the sale of your home up to $500k of Gains if you lived in it for 2 years but owned it for 5 years.

The proposal would change this rule to live in it for 5 years and own it for 8 years. 

>>I'm aware of this and definitely concerned. I would hope there would be some grandfathering. I also read that there could be an exception if you had to move for work, which we did.

>>As far as going back to being a real estate agent, I certainly could. My license had been expired too long for reciprocity, but I'm an excellent student, so having to get it again. Would not be a big deal.

That's one of the possibilities on the table. If I sold, one of the options would be to pay off our primary residence here in Denver. Not a great return, but then we don't depend on the house income for our son's tuition, and also have some money to put elsewhere. Times feel uncertain, and having a paid-off house feels like a pretty good hedge if/when the next downturn comes along. 

On the other hand, as far as long-term appreciation goes, Brooklyn is about the best bet there is. But, I'm concerned about our current cash-weak position. I could get a day job I suppose, but as a middle aged mom who hasn't worked in a while, I'm not sure how much I can pull in. I don't exactly have a career path to go back to. I'm entrepreneurial, so the idea of getting back into the real estate game is appealing, but also fraught with pitfalls. 

Hello Big Pocket People,

My husband and I own a 2-Family property in Brooklyn NY. We have one more year before losing our cap gains exclusion. We moved to Denver for my husband's job two years ago.

The appreciation in Brooklyn has been pretty insane. I'm just gonna say I, rather than we, since I'm the real estate junkie in the family. If I pay taxes on the gain we'll probably clear about 800-900k. If I do a 1031 the money is probably somewhere north of a million.

The house has been earning a strong return as 1/2 Airbnb and 1/2 LTR and we have been depending on the income since I quit my day job and we had to take on tuition for my son's schooling (non-optional I'm afraid). I guess i would just keep going that way if I was sure that I would be able to keep Airbnbing forever. It's currently legal for me, but who knows if they will change the laws.  

I feel like we have some very big decisions to make pretty soon, and I really don't feel like I am informed enough to make them. I am in need of a 1031 Advisor, tax advisor, and I could really use some mentorship. I love real estate (I was an agent in New York) and I could use guidance. I'd love to work with someone who is active in the Denver market. 

Thanks in advance for your advice,

Jennifer C.

Originally posted by @Curt Davis:

I dont think lenders let anyone " assume " loans anymore.  The only people who will be able to turn this home for a close to full retail value will be a TK provider and you will have to pay the juice for this service.  

 I'm in the process of doing a Refi on my primary residence. I was looking at a 30-year fixed from Bethpage Fed Credit Union that was assumable. I was very surprised to see that option.

Originally posted by @Rich V.:

 Thanks for posting this @Evan Bell - I'm definitely interested in this as well and will be watching this thread closely! Definitely check with local laws. I'm in NYC and a few months back they passed legislation not allowing any "unhosted" (full home) rentals in NYC."

 ...Unless you own a 1 or 2 family home. Then it is still legal.

Not in the metro but they finance everywhere but Texas; Bethpage Federal Credit Union in NY. They don't still have a deal quite this good, but I got 80% LTV, Interest-only, Fixed for 2 years at 2.5%, prime thereafter. It looks like their current deal is 2.99 as long as you keep a for 12 months. They pay the closing costs. If you close the loan before 36 months you have to pay them back.

I have a duplex in Brooklyn that used to be my primary residence. I currently have it as half Airbnb half LTR. I manage from a distance (moved to Denver for husbands job).

I find that if you go with a quality washable paint, you can get marks off with a magic eraser. I am allergic to "builder beige." I used Benjamin Moore Decorator White the last time I painted my rental. It's pricey, but the coverage is much better than Sherwin Williams. Takes fewer coats. If anyone can recommend a less expensive brand that they think is great, I'm all ears. Just about to paint my primary rez.

Ozone machine. It's what hotels and some Airbnbers use when naughty guests smoke in the property. http://www.ozonesolutions.com/journal/2009/how-does-ozone-remove-odor/