All Forum Posts by: Joe Colasuonno

I’ll be there. 

I’ll be there.

@Dave Foster Gotcha, I just had the thought now.  Not actually doing mine that way, but the way you explained it got me thinking.  

@Dave Foster for argument's sake, does the following scenario make sense?

1. 30 days ago, I refinance the original property for 145k, pulling out 70k in equity.

2. Close the sale this week, and only walk away with 5k after paying off the 145k in debt, and 1031 the 5k into a new deal.

3. Close on my 900k purchase with 5k from the intermediary, 70k from the refinance 30 days ago, and the remainder out of my pocket.

If so, I would have free reign on how to use the 70k over the next 6 months before I buy the new property instead of having it tied up with the intermediary, right?

I have a property I am selling this week.  I purchased the property in 2012 for $45k.  I put an additional 40k into the deal in capital improvements in 2012 as well.  I refinanced the deal for $90k, and currently have $75k in debt on the property, but my basis is only $68k.  

I am selling for $160k, and walking away with about $75k in profit after closing costs.  I will be 1031ing the full 75k into a new property that I am purchasing for 900k.  I need to come to the table with 180k to close (75k from my 1031 intermediary, and 105k of my separate funds).  

Being that my basis in the original property I sold was 68k, the IRS looks at my sale as if I make a total of 82k instead of the 75k I actually walked away with from the closing table.  Do I have to pay capital gains taxes on that 7k difference?  Or being that I am buying a property and putting more than just the 75k into the purchase, can I 1031 the full 82k on paper?

We use a RUBS allowance on some of our Allentown properties. Collections can be difficult sometimes. What we do instead for tenants that don’t pay the RUBS bill is increase their rent accordingly on renewals to cover water and sewer along with their regular annual renewal.

Joe

If it is a single family home we always make tenant responsible for water.  LCA is quick to shut the water off to the home is the bill is not paid.  Back when Allentown was in charge of the water and sewer billing, houses could go a year or more without paying and not getting shut off.  LCA is on top of it, though.

Dont bu anything on the 300 block of law, the 400-500 block of Liberty, or 900 block of Liberty. Those are pretty rough areas.

Stay off alleys downtown, other than that, good rule of thumb is the further west you go from Ridge,  the better it is. But in all honesty, things can happen anywhere. I’ve had violent tenant issues in west end buildings and some of my center city stuff hasnt seen a crime during my ownership. Center city as a whole is the worst as your map suggests, but it doesnt affect your ability to rent for the most part.

@Justin Brown if you want me to bring some deals I'm looking at to run through numbers, I can do that.