All Forum Posts by: John Roberts

Jon, your analysis is correct. The father owns the property and is having his son figure out how to get rid of it and does not have the capital to dispose of the property. The goal is to walk away with as little pain as possible. At this point I am trying to calculate what the tax consequences would be of foreclosure or short sale. Can you point me to a good resource to research this or can you offer some suggestions and/or ideas.

Thank you Uwe. The property is located in San Antonio, Tx and is 70% occupied. There are 162 units and the tenants pay utilities. Based on the market study the rents are below market at this point.

I can get further information on the expenses later. At this point what would you suggest? Is there a way he could walk away without a huge tax liability or would it make more sense to try and occupy the property and sell it off?

Hello,

I was presented with a problem recently and am stuck in finding a solution.

A friend of mine was given control an appartmet complex by his father last year and he does not know what to do with it. He has no experience in real estate and does not necessarily want to be a landlord.

The complex is in a low income area with no turn around in site. After he paid a management company to come in and asses the property it turns out it needs about 300k in renovations to make make it livable. Further the basis on the house is 3.2 million and the debt left to repay is 3.8m.

So my question is what should he do? After some research I can up with the following ideas: cleaning it up and fill it with sec 8 tenants, stabilize the rent role and sell off the property. Based on the 2011 HUD FMR schedule he could get an above market rent paid directly by the government. Or, possibly selling the property and doing a 1031 to defer the taxes or doing a short sale.

As you can tell I am fairly new to RE myself so I am looking for some quality ideas from experienced pros.

I may have left out some vital info because of my ignorance on the subject. I can provide more as needed.

Any help would be appreciated. Thank you.