All Forum Posts by: Joseph Quarto

 Hi Dave,

Wow, wow, wow!  Very different way to look at things.  I am retired, but I plugged in very loose high number from both mine & my wifes past.  The numbers in your scenario are kinda mind-blowing for our circumstance.  Will have to try to wrap my head around this.

1)Are there Realtors that "specialize" in helping to complete the 1031 in the timely manner it requires?

2) What is the cost for a QI to hold the funds?

3) What if I don't use ALL the funds, say only 80%.  Does the Cap. Gains tax then apply to the entire amount?

Thanks for the great explanation,

Joseph

Seattle, WA

 Hi Mike,

Yea have looked into that also. but ultimately taking a chance that I get my regular payments, etc.  Definitely an avenue to look at though I guess.

JQ 

Hi all,

Do any of you recommend any good honest, hardworking full-time brokers in the Mason County, WA. area I can contact for properties available.

Thanks much,

Joseph Q

Hello all,

So I have a Good problem I guess, but that does not make easier to decide where to go.  I was (am) a Dave Ramsey fan & spent a few years paying down our house AND a 5 unit Multi-use building.  I now believe this was a Mistake on the investment property.  I now find myself with good rental income, LOTS of equity and now what?!  

While I don't mind leaving something to the kids.grandkids, we feel were were the ones sweating & working to be in this position and want to enjoy at least some of it before giving any to Uncle Sam.

Here are some facts & some background;  Recently retired, comfortable, want to travel.  In process of selling our house, (should close next week).  We live part-time in the 5 unit building, and I DON'T want to be there full-time.  Would maybe like to find a 2-3 unit property to purchase on a lake, river, sound with a little land etc. for family get togethers, get away with some income.  I DO NOT want to really expand my Portfolio more than that, as I said I would rather enjoy retirement interests. We are Very conservative, have pension, SS, other savings...

So should I REFI, pull some cash, do a 1031 sale, sell outright & pay taxes....?? 

The 1031 exchange seems a lot of work, plus finding something in such a short time span 

I have done some looking into ReFi - seems I could get something for a 10/25 in the 4.8% range, (closing -$1,500-2,000k & appraisal in the same range).  Since we are used to paying around $2,400 including extra on principal over the years, we would actually lower that by a few hundred a month.  AFTER ALL expenses, including Mort., we would clear about $2,000 a month AND we live there free.  I could actually increase this by another $400-$500 if we moved from the larger unit to the smaller unit.

So here are the questions & things I am not clear about;

1) which way should I go? Another way I am missing?

2) Is the money I pull out taxable in the year I pull it.

So how much should I pull out?  Building will likely appraise in low 7 figures, our existing mortgage is about $50k.  We were thinking maybe pulling $300-375?? 

3) should I take the 10 year or 5 to 7 year options at a lower interest rates?

4) what happens after the 7-10 years, do I just Refi the remaining balance?

5) If we sold near the end of the Refi term, how is that $$ treated tax wise for Income Taxes

Whew, I hope I did not bore you all & at least some of you have read thru this.  All constructive answers greatly appreciated.

On a final note, do any of you reccommend any good honest, hardworking full-time brokers in the Mason County, WASh. area I can contact for properties available.

Thanks much, 

Joseph Q

Hi all,

We have a multi-use building with a LOT of equity and only about $65k left on the 7 year mortgage @ 5.15%, due in 2018.  We want to buy with cash maybe a small duplex, where we live in & have a renter. If we were to pull a good chunk of Cash from the building out & buy the duplex, how is that money treated?  Can I get a 15, 20, 30 year loan on this refi multi-use with good terms?  We are retired., will that make any difference qualifying for a Refi? The building generates real good cash flow & we would likely keep it for a few more years.   

Any suggestions as to which banks to approach for this.

Secondly, does anyone have any suggestions for an Insurance company who cover older buildings in West Seattle markets.

Thanks for any pointers & suggestions,

Joseph

Steve,

Why is a RE contract better for me than a Note Deed of Trust?

What do you consider long term? 5-7 years?

"Rent collection and op expense payments are the responsibility of the owner, of course." Meaning the new buyer owner, right?

Hi Mark,

Yea I have my CPA running some numbers on that to see if there is a big difference in which way we go.  It just seems the 1031 would be a hassle, but I have to research more I guess.  

I suppose there are Realtors that "specialize" in doing/fiding 1031's??  Guess that might make a good question another post. 

Thanks JQ 

Hi Steve,

Thanks for the reply.  Figures you quote seem reasonable in todays market; I might feel safer if I could get a little more upfront.  So a "Contract Service handler" takes all the rent $$ and distributes it to everyone (like me, Utilities, Electric, Taxes, etc?

what do you consider "long term", 5-7 years? Then a cashout? 

Hello all,

I have a 5 unit property.  A good long term tenant has approached us about selling.  They are successful business people, young enough to know the value of long term property hold, (especially here in Seattle market).

 We are thinking about Holding the Paper.  We are retired, comfortable, make good rental income on the property, Building almost paid off, but getting tired of doing the minor maintenance & management (used to work for Property Mnge. firm, don't want that). Also want to travel with no daily worries.  Don't THINK I want the hassle of 1031 exchange with more properties  Just want the monthly income for now, (which I figure would be close to what we make now minus upkeep) . Sale would be in low 7 figures.

Are there any thoughts on this?

1) what should the rate be?

2) the DP?

3) term length & any balloons

4) do we need anything special written up other than whats thru Escrow company

5) Was thinking that Taxes & Insurance would be put into set Escrow company account to assure they are paid.

6) Is it hard to get building back if things don't work out?

anything else I should consider? 

I am thinking with NO bank we can pretty much write up anything that works for both parties

Thanks much, love this site with all the info from such smart people.

Joseph Q

small commercial & multi-use properties are in the 2.9 -5.5 range. One 3 unit one story next to mine in West Seattle just sold with a 5.2 CAP and it is pretty much a knock down. But he was sick, needed the $$ & sold quick.

JQ