All Forum Posts by: Jeremy Clarke

Thanks @Wayne Brooks. Depreciation Recapture is a FIVE letter word. I went through that this past tax season and owed. However you made an interesting comment. You said quote, "In either case you will have some depreciation recapture tax due for the depreciation during the rental period, whether or not you actually claimed it." I find it interesting. So you are saying that if i choose not to depreciate my home while renters are in it, i will still have to pay the recapture tax while they lived there? I am asking because some people where i live aren't claiming depreciation to avoid the recapture tax because property values are in fact rising significantly year over year. 

@Steve Babiak, i got ahead of myself with the title of this post. I am referring to the IRS capital gains exclusion and how often i can take advantage of that. I sounds like once every two years. I sold a property last September that qualified and once i hit this upcoming September i will have another property that qualifies, but it sounds like i will have to wait a year to take advantage. 

Much appreciated the advice Joe Villeneuve and John Brinkos!

I'm looking for someone who can clarify the homestead exemption act for me. As i understand it today, I can sell a house that I've lived in 2 of the last 5 years and not pay capital gains tax on that. So I did that, last September. I own another house that i will have lived in for 2 years this next upcoming September. What i'm trying to understand is, how often can i take advantage of this exemption? So if it will have been a year since i sold the last property, can i take the exemption again this upcoming September or do i have to wait longer? If so, how long do i need to wait?

I've done some buy and hold investing the past 5 years or so. I've had the benefit of the market on my side so the 3 properties i've owned have appreciated nicely since then. I sold one, live in one currently, and still own one investment property. I'm thinking of selling the investment property and taking the equity later this Fall.

If i sold this property i'd keep the one i live in but have a nice chunk of change to reinvest somewhere (likely the midwest). If i go this route, my math tells me i can make close to enough to live on and work optionally if i rent out my current house, so that would free me up to travel and such.

I'm 30 years old and don't want to work my whole life, but i also don't want to be bored. I don't think i'd bring in enough to truly "retire" (health insurance etc). Any advice (maybe some of you with more life experience than me), would you take the equity while it is there or would you hold the property that has been appreciating very nicely year over year?

Hey Taylor Howe , welcome to Fort Collins! Such a great city. I’ve been here over 8 years and don’t think I’ll ever leave. PM if you have any RE questions or just need recommendations on breweries and good food!

Andrew Postell this was helpful, thanks! The purchase price is $320,000 and the loan amount would be for $224,000. I like the creativity. What it comes down to for me are the monthly payments. I’m fine getting creative to make it work, but need to think of something that keeps the monthly as low as possible. You asked on portfolio loan. That one is %35 down 4.75% interest rate (buy 2 points) over 7 years fixed - over 30 years.

Good day!

I am under contract with a non-warrantable condo and am working with my lender on financing options to do a portfolio loan since i can't get conventional (owner occupancy ratios). The numbers with him work alright, but need to pay to buy down points to make my monthly payments somewhat reasonable which i'm asking the seller to pay.

We presented the ask to the seller and the seller did something we weren't expecting next.

Since the seller owns his condo free and clear, he offered to loan me the money. These were his terms 30% down, 10 year 6.5% interest only loan amortized over 30 years with an ARM after the 10 years. Which if i'm doing my math right, makes me owe him roughly $1213 per month for those first 10 years. Personally - I think that is an insane ask and much worse than going with the portfolio loan. But i'm trying to entertain it.

What are your thoughts? How would you counter that, if at all? What are the risks in private lender vs. using a bank?

Appreciate the insight.

Jeremy

Justin R. , thanks for all the really good information! Even though it's not great news for me.

Good morning everyone, I am a Realtor here in Fort Collins, CO considering buying property in sunny San Diego. Most of my immediate family is out there. I'd like to have a place to stay when I go to visit them as their downtown apartment is not huge and could be a nice investment for me. My thought is, I could go out for a month or so at a time and when I'm not using the property air bnb it. I am looking for information on that. Everything from laws in San Diego for or against, personal experience, management companies who specialize in this, carrying cost (ball park is fine). I would be looking in or around the downtown area. Nothing huge. An entry level condo / studio would be great. Thanks in advance! Jeremy