All Forum Posts by: Jesse Rivera

@Diya Wahi To help your client avoid capital gains, consider a 1031 exchange to defer taxes by reinvesting proceeds into a like-kind property, though the tenant lease may complicate timing. Seller financing or an installment sale could spread tax liability over time but require lender cooperation due to the existing mortgage. Alternatively, a Sub-To (Subject-To) sale allows the buyer to take over the mortgage, though due-on-sale clauses could be a challenge. If feasible, waiting until July 2025 may provide more options or the chance to qualify for the primary residence exclusion by moving back in.

This post does not create a CPA-Client relationship. The information contained in this post is not to be relied upon. Readers should seek professional advice.

Great answer. Save me a lot of typing, lol.

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Orange County, California

Quote from @Delbert Standifer:

@J Kilroy greetings I just spent 200k on my ADU. It's cash flowing great. The property is worth 800k. I have not gotten an appraisal yet but I'm hoping at least they will give me dollar for dollar amount I spent on the ADU. I should be finding out by the end of the month or early next month. I wish you the best!!!

Your 800k valuation, is that before the ADU, or after?

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San Diego, California

I have both, and I love it. You cannot be the loan officer and agent on FHA, but any other loan you can.

And buyers love it. They only have one point of contact.

1 Vote

Lender is going to want to see that your job is a reasonable commute from the house. What does reasonable mean? In LA it would be different than Fresno. It is up to the discretion of the underwriter. Start talking to lenders and see what they say.

2 Votes

Go to the events section and put in your zip code. There are events that are happening every month. hope to see you at one!

1 Vote

I'm here in socal. Let me know if you need help. And check out my google reviews (google jesse rivera mortgage broker).

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Some good posts here, I agree with them. I think we have at least another 5 years of appreciation (supply and demand) and getting now is a great idea. Just run the numbers, and make sure they work. And bonus if you can do short term rentals.

Rates are great right now (still), but should be going up in 2022, so another reason to act now. There are some great first time home buyer programs as well.

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Orange County, California

Hi Justin!

-Transferring to an LLC won't help at all

-You can use the income from the investment property to offset the mortgage, taxes and insurance for the property.

-Don't quit your day job and you should be fine. One of the problems I see is that once an investor get a couple properties under their belt, they quit their day job. They have good cash flow, but on paper (taxes) they don't make enough to qualify for another mortgage.

1 Vote

Sorry to hear about your difficulties, but sounds like you're on the right head space to move to the next phase of your life. You have to find your own path, but if I were in your shoes, I would definitely use your VA entitlement to buy a new home, so that you can enjoy the appreciation in the next few years. This will give you more options down the line.

Your Chap 13 bankruptcy in not a deal breaker for VA, as long you've made the last 12 payments on time.

Good luck!

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Hi Travis - Welcome! What part of LA? I'm in Long Beach!

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All Forum Posts by: Jesse Rivera

Jesse Rivera has started 22 posts and replied 413 times.

Post: Client is Looking for a Way to Sell and Avoid Capital Gains - What am I Missing?

Post: Lenders that appraise ADUs accurately so I can increase my HELOC?

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Post: Travis Here — Introducing Myself...