All Forum Posts by: Joe Trainor

Thanks 

@Joe Trainor

We bought a small farm awhile back that served as a get away/deer camp. The previous owner had horses in a few of the pastures so it is set up for ag use. We were recently contacted by a friend of the family about leasing our pastures to cut hay and to graze cattle. Does anyone have a recent form they’ve used that they would be willing to share? Thanks in advance.

@Joe Trainor

Wow. **Does and sale** - auto correct and fat fingers didn’t treat me right, apologies to those that care.

My wife and I started purchasing rentals a few years ago with a goal to purchase a farm/land/hunting camp in 5-10 years. After two years and 2 rentals we found a house and 35 acres next to some out of town family members the day it hit the market. We got it under contract same day, made the trip and discovered they owned the house and 5 acres across the street. Got a local lender who created one loan for both properties and checked our 10 year box early.

Few years later we are in a position to buy more rentals and are actively looking.

As fate has it, our neighbor approaches us wanting to sell his 40 acres that boarders a few of our fence lines at the camp. He wants us to make the first offer though but he is serious as he is ready to retire and wants to sell the land while keeping his home.

Assuming you could only afford the note on the property or invest in another rental, would you jump on this opportunity to add an to an existing farm as it may never come up for sale again or would you save your funds to invest in another rental that would create revenue.

@Faraz Rashid

@Michael Plaks

Figure out your true tax liabilities from the inheritance, sell and put that new found capital to work in a producing property else where.  It will be tough to find a cash flowing property in La Porte that doesn't have a lot of front load cap ex needs.  This house describes many in that area.  You could try to 1031 but your holding costs during that time could eat up any real advantage you may see from any taxes you could just pay from selling. 

Basically, run your holding costs with the house sitting vacant for 3 -6 months while you would go through the process of a 1031 exchange.  Compare that to the benefit of what a 1031 would bring you and make an educated decision.

Sent you a PM Kevin!

You bought it as an owner occupied so I am assuming you lived in it for awhile and then rented it out?  How many years did you live in it before renting it out?  May be able to avoid capital gains taxes all together if you have the right timeline...

Thank you all for the input.  I really don't foresee it being an issue, its a brand new electric heater, but it is easily accessible.  There are clear warnings posted on the unit itself about the dangers of temperatures over 125 degrees and removing panels with the electricity on.  I'll snap a few photos of those along with the current temp setting before releasing the property for my records.  Probably overkill on my end.  This is my first rental and I have a few days before the approved tenant can sign the lease.  Got a small window to add anything I may have left out.