All Forum Posts by: Account Closed

Hi @Samuel Lynch. I'm in Wilmington as well. I'm happy to answer questions.

Hi Pete, 

I was in a similar position a few years back. I had great tenants and didn't want to kick them out into a tough rental market. I opted to offer to sell it to them. I missed the 3 year deadline so I did a 1031 exchange.

In your case, 3 general options to get some cash out:

1. cash-out refinance or ELOC if that's an option. That's a good option if it fits your situation.

2. sell sooner to enjoy capital gains tax-free.

3. sell after 3 year deadline.

in scenario 2, you can sell occupied or vacant. Maybe worth a few $ less if sold occupied by tenant, but compare that to tax on capital gains, and cost of rehab/vacancy.  

in scenario 3 you can pay tax or do 1031 exchange if you wanted to purchase additional property with the funds.

Don't forget you'll be paying 25% depreciation recapture if you sell, regardless of how & when.

I hope that helps.

Good luck,

Joe

Sounds like a nice find if it appraises for over $200k and you can purchase it for less than $150k...

I have rentals in Wilmington. If you want to buy it, @Rachel De Faut is my broker/agent/realtor *and* property manager. She can guide you thru the purchase, and then manage it as a rental for you.

I hope that helps. Good luck!

Welcome Kevin.

I think there is a local RE group, but I live out of state so haven't attended any meetings.

If you're on Facebook, there is a Wilmington Short Term Rental Advocates

Welcome Kevin! 

I work with @Rachel De Faut in Wilmington. She acts as my broker/agent and also property manager. You might reach out to her. 

@Donna Salmiery, Rachel can fill you in on the current status with Wilmington city counsel and short-term rentals. City counsel is currently debating limiting them...:(

Good luck to you both... 

If my situation, I'd probably start by send each neighbor a friendly letter, saying who I was and how to contact me in any emergencies, etc., with no mention of trespassing.  I'm not chatty, so knocking on each door doesn't appeal to me.

With the gates, if there doesn't seem to be a good reason for regular access, I might simply put a light padlock on each of them. Cheap, easy to break in emergency. Just to keep the kids out. If a lock is broken that would be an invitation for further discussion with the neighbor.

Good luck!

I was confronted with this delema a few years back - lots of ideas & opportunities, but no cash. I was very hesitant to touch my Roth, IRA or 401k, since I believe in diversification and I'll need those funds at 62...

I chose to use borrowed money and leave the Roth for absolute emergencies. I refinanced, took what I would out of my primary residence, and used a handful of 0% teaser rate credit cards. My model was buy a property, rehab, put tenants in place, cash-out refinance with the lease supporting income for DTI calculation, repeat.

Wells Fargo, TD Bank, and PenFed will do ELOCs on investment properties.