All Forum Posts by: Kenny Smith

🏡 Real Estate Industry changes here! 👀

The NAR lawsuit has been settled, and here's how it COULD affect you. On 8/15/24, 2 of the biggest changes are..

✅ No longer can a buyer agent commission (that would be paid for by the listing brokerage or seller) be marketed on the MLS listing.

✅ An agreement must be in place between the buyer and buyer’s agent before any properties can be toured.

It should be noted these rules are in line with the NAR settlement and is an MLS participation requirement, not state law. 👨‍⚖️

🏡 MASSIVE transformation coming near downtown…🏙️

With one of the last areas to develop near downtown, the neighborhood just south of Empower Field will get a massive upgrade 🏟️

The stadium district master plan is only 10% done, but will include a mixture of housing options, jobs, game day/special event experiences, and more.

When this 58 acre space is developed, it will re-shape the landscape of downtown once again….👀

Investment Info:

Single-family residence buy & hold investment in Evergreen.

Purchase price: $662,000
Cash invested: $80,000

4 bed, 2 bath Single Family home, 2655 sq ft. We knew we always wanted to live in the mountains, and could not stop house hacking! This was a perfect set up as it had a walk out basement/separate unit with 2 beds/1 bath and a kitchenette. We are able to live in the top floor while we STR the basement during the summer months, and MTR during the offseason. The rent doesn't cover our mortgage completely, but covers a good 2/3rds!

What made you interested in investing in this type of deal?

Evergreen house hack

How did you find this deal and how did you negotiate it?

MLS, represented myself as I am a Real Estate Agent.

How did you finance this deal?

Conventional, down payment assistance. We financed the down payment, so with my buyer's agent commission I got back from the seller at closing, not only did we bring $0 to closing, but actually made $5k when we bought the property!

Investment Info:

Single-family residence buy & hold investment in Evergreen.

Purchase price: $662,000
Cash invested: $80,000

4 bed, 2 bath Single Family home, 2655 sq ft. This home was very unique for Evergreen in that it was perfectly set up for a house hack, and it is super rare to find them in Evergreen. We knew we always wanted to live in the mountains, and could not stop house hacking! This was a perfect set up as it had a walk out basement/separate unit with 2 beds/1 bath and a kitchenette. We are able to live in the top floor while we STR the basement during the summer months, and MTR during the offseason. The rent doesn't cover our mortgage completely, but covers a good 2/3rds!

What made you interested in investing in this type of deal?

Evergreen house hack

How did you find this deal and how did you negotiate it?

MLS, represented myself as I am a Real Estate Agent.

How did you finance this deal?

Conventional, down payment assistance. We financed the down payment, so with my buyer's agent commission I got back from the seller at closing, not only did we bring $0 to closing, but actually made $5k when we bought the property!

Anyone know a good tile contractor that can do a simple backsplash in Denver? My tile guy unfortunately just had some health stuff come up and is out for a couple months.

Thanks in advance!

Awesome opportunity to assume a loan! Own it as a primary, live there for a year, rent it out, and do it again.

- Centennial, CO

- $659k

- 4.17% assumable rate

- $34k down payment

- $3140 monthly mortgage

FHA and VA only..PRIMARY HOME LOANS ONLY. These pop up all the time, DM me to find you one within your criteria.....

@Michele Granata 

great question!  So currently I have my policy with liberty mutual. More and more insurance companies are adopting the specific coverage called "home share" coverage.  You need to make sure you have this coverage when house hacking.  It is not a landlord policy because you will still be living there.  Once you move out however, then you'd switch it over to a landlord policy.

If it was me, I'd work with an insurance broker who would go out and shop rates and this coverage with all the big insurance companies.  Best part, their fee is paid by the insurance company not you!  So it's a win-win in my book.

Let me know if you're looking for a good one, I have a guy I work with.

Anyone know of a good CPA around denver that focuses on real estate? 

Thanks!

Quote from @Matt Devincenzo:

It sounds like he may be applying a pro-ration to the exclusion, which there is a provision for. But that provision is for things like a job transfer etc that were out of your control...I also think they may only apply if you didn't achieve the 2 years, not if you did reach it and then 'lost' the eligibilty.

That said I'm also not a CPA/EA so hopefully one of them can help clear this up.

Yup, you are correct.

to give more context, I was well aware of the 2 year deadline this past year.  I would of had to sell it by June 17th of this year.  However, my building was condemned due to a large asbestos spill in March of this year.  Now that I think of it, I’m wondering if this is the exception.

if so, I’m wondering how long I have to sell the property after we are eligible to move back in?  They are hoping the abatement will be done by December of this year.  My unit has been uninhabitable since March.

thanks all for your feedback.

Quote from @Bill B.:

I’m. 99% sure 23.5 months doesn’t qualify for any tax savings, but I am not a CPA. Which means I hope I’m wrong or that’s a bad CPA.

Ps. Have you owned it exactly 5 years? (Was it your primary for only 1 year and then a rental for 4? Or was a primary for longer? Again, I don’t think it matter but more info for an expert who may weigh in later. I do know you only get a proration if it was a rental, so moving back in now for 2 years would only save you 40% (3 out of 7 years.)

Well, I bought it back in 2018.  And it was my primary until June 2020.  Next june it will be 4 years rented.