All Forum Posts by: Tou V.

@David M.

Yes seller can sign another contract, but then it would be at todays value. Which isn’t going to do them any favors. Considering when we originally signed the property was only $100k years ago. I have been claiming the interest deduction and rental income on my taxes for years. Not sure if that’s a good or bad thing if we have to prove to IRS that I indeed took over property years ago. Thanks for the info.

@David M.

Thanks for the info.

@Wayne Brooks

Have a contract that states I’m taking property subject to current loan. That I’ll pay the loan, taxes, etc…. directly to the bank, tax assessor, and insurance company. All rental and future proceeds whether positive or negative are mine. Seller is also willing to do any additional paper work needed to get this sorted out.

@Wayne Brooks

How would that affect the seller? Seller bought it for $100k during the housing crash and didn’t have stomach to be landlord. I paid him same $100k years ago. Now it’s worth at least $350k after all these years. Are gift tax or any other issues here considering the huge price difference? Trying to do it in a way that doesn’t harm seller.

How can I best salvage the situation?

Years ago did a subject to which was not recorded in California. Been collecting rent and claiming interest and expenses on tax returns per terms on the contract. Now I either want to sell or have my name on title.

1) If I sell, will escrow pay me? How do I do it so the seller doesn’t need to get involved or be harmed financially? Seller if fine with signing a few docs. They just don’t want to deal with taxes and other stuff as in their view, I’ve owned the property the day we signed. There will be capital taxes that will need to be paid and I’m happy to pay it.

2) If I add myself to title and don’t sell. Will it be back dated or will they assess taxes on the current value? Bought it for $100k and now worth $350k.

@Wayne Brooks

I did a subject 2. Just wasn’t recorded. Been renting it out and claiming the interest, income, and expenses per the contract for years. Now I want to sell. What can I do? Will escrow cut me a check even if I’m not on title? I’m still on good terms with the previous seller. Obviously capital gain taxes will need to be paid. Thanks.

As I understand it. When taking over properties subject to. The title doesn’t change from previous owner. When selling does Title company make a check out to the owner on title or will they pay the investor directly?

My scenario: I took over a house years ago, but name not on title. Now I’d like to sell it and have proceeds directly paid to me since it has appreciated nicely. What will the previous owner have to do, if any?  Thank you.

By $125k net, are you saying you can make a profit of $125k on the property after factoring in down payment and associated costs of original purchase? If that’s the case, would you rather have $5k of yearly cash flow or lump sum of $125k instantly? Myself I’d prefer the $125k right now and reinvest that elsewhere. Takes a couple of decades at $5k to make $125k.

Originally posted by @David C.:

@Matt Shamus What do you think of deals like this one in Stockton?  $138K for 3 doors. $650 to $700 per door.  Would you consider this a good deal?  I am looking into some MFRs in that area.  Thanks.

https://www.redfin.com/CA/Stockton/811-Astor-St-95...

I'm from Stockton and those same type of triplex in the same area are no longer $138k.   Rents are $650-700 in that whole neighborhood. It may of cost $138k earlier this year, but now most are going for $180k.    If you do find something similar for $138k, I'd consider that a good buy.  Good luck. 

Will let you know what I've done if anything.  Thanks for all of your helpful comments and good luck to everyone.  Wish I could of found this site years ago, but better now than later.  Thanks again.