All Forum Posts by: Jeremy M.

I'm casually looking into a few different 4-plex's in the Houston area and several of them seem to have been a part of a large apartment complex at one time. My concerns about this is rental competition (since there's 20 identical units next door) and inability to increase value appreciation (outside) since enhancing the outside of the one 4-plex unit probably won't have much of an effect on the whole complex. (because there will still be 4 other 4-plex's in bad condition). Hope I made sense.

My question is does anyone have any experience with a situation like this? I guess this occurred as a result of a foreclosure on an apartment complex and they sold them off as individual units? Just looking to see if someone will tell me to run away from a deal like this or if I should dig deeper to see if it might be viable. Most of the units are 100% occupied.

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Originally posted by Bill Gulley:

A 1031 Exchange may not be worth the effort and expense and pressure for a small investor, it depends on the tax liability from the sale. In the exchange you will need a qualified escrow facilitator, title companys/closers provide the services but charges,in my last deal was about $500! Depending on your tax rate that 500 bucks could just go to Uncle Sam.

Then what is the value of the defferal, as it's tied up in the next property? Although you don't have to move the entire gain through the 1031. You can have the deferral to a later date when you are in a lower tax bracket.

You are under the gun to buy. In my case I was lucky to find a comprable property that I was willing to keep, I closed with about a week left!

Be sure to check the cost of doing it in your area, you might decide just to bite the bullet.

If you've held the property long enough to be a capital gain (15%), and you are of the opinion that taxes will never be lower than that but quite possibly higher, then isn't a 1031 exchange a significant risk?

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All Forum Posts by: Jeremy M.

Jeremy M. has started 1 posts and replied 2 times.

Post: Apartment complex sliced into several 4-plex's

Post: is a 1031 not worth the hassle?