All Forum Posts by: Kevin L.

You're a genius! thank you so much. Does SFH vs. Duplex make a difference here?

HI BP community, 

My parents have a rental that they'd like to sell and exchange for property in a better location. The goal is that in the future my brother will move into that new property. However, the problem is that the new property will most likely cost 2x the proceeds they'll be getting from the old property and since they are retired they most likely will not qualify for a mortgage to make up the difference. 

I'm wondering if there's a way to structure the 1031 such that my brother is added to the transaction along with my parents so he can take out a mortgage to make up for the difference. Any ideas? I'd hate for my parents to sell it and pay a bunch of capital gain taxes. Thanks! 

I looked through the FHA requirements and i didn't think they were specific enough. Repairs requested were around repairing appliances (dishwater, stove), caulking, additional insulation, nail hole repairs, rodent proofing, ceiling fan replacement. Like i said, some are just nice to have, in my opinion.

We're selling our rental and the buyer is asking us to complete a bunch of repairs. Some of the repairs are legit while others are just nice to have. I was thinking about offering them a lower contracted price OR a credit toward closing. Since my buyer is using a FHA loan I am curious if there's any repairs that would need to be completed by the seller prior to closing? Can I offer them a credit/lower sales price now and then take it back if it's determined that repairs need to be done prior to closing by FHA appraiser?

Originally posted by @Neel Shah:

Hi all - here is an update.  there is no option/button to formally decline the loan on the SBA EIDL portal.  I spoke to SBA and they asked me to ignore the request, it will "go away" in 30-days. He also notated my account for SBA documentation purposes. 

@Neel Shah: did they ask you to repay the $1K grant if you reject the loan?

take advantage of the low rate. i agree everything is relative. my first property carried a 6.8% interest rate! I understand that investment properties will always have a higher rate but didn't expect the gap to be this wide as the gap between the two have always been 0.5% in the past for me. With so many investors out there buying properties i was just wondering what rates others are getting and whether or not they're going through the bank route. 

I've been thinking about refi my rental properties but I'm getting pretty bad rates. I've been quoted 4% or 3.875 for 30 year fixed for rental properties with less than 70% LTV and loan balance of mid 150K. Is that the going rate now? For primary, I'm getting close to 3%!

I did an annual inspection every year for the past 4 years. I don't do quarterly inspection because I feel that's intrusive for the tenant. I've never found anything major in the past other than holes inside the house to hang drapes / pictures. I have told him in the past both verbally and in writing that he needs to ask me for permission every time he does anything to the house. He doesn't listen. You are right that he has no respect for me and is not afraid of me. But I also know that there are tenants that are 10000x worse than him. This is why I said that I'm ok with him as long as I am charging market rate.

Hi BP community, I understand that the primary residence capital gain exclusion requires that you have lived in your house as primary residence for 2 out of the past 5 years. Does it mean that I have to have owned the house for 5 years? I've owned it for a bit more than 2 years and lived it in as my primary residence. Thanks!

Thanks all. I'm ok with him staying if the rent is closer to market. He pays on time and doesn't bother me. The neighbors have also said that he's friendly to them. I have a better justification of baking in the repair cost if the I'm collecting closer to market rent..I'll increase the rent and see what happens.