All Forum Posts by: Kezia Edmonson

Old unit: Have a single family home which is, and always has been an investment property. Planning to sell; approx 350k net. 

New unit: 4-unit multi family in which 3 units (with existing tenants that will carry over from seller) will remain investment; I will move into (currently empty) 4th unit AND USE as primary residence with primary mortgage. Approx 800k 

Can I 1031 old unit into the new units?

I have a house I may want to sell/1031 exchange (currently a SFH ~$400k value which is all paid off). I am looking to buy a small multi-family (3-4units) as a primary residence in 1 unit, rentals in the others (likely ~$1M cost).
I also want to set up an LLC while doing this as I'd like my personal assets (now fairly large) to be protected from any potential future issues from the new property. This is in a major city, high COL area. These are 2 separate things I am considering so both do not have to happen on the same deal if it can't work that way, but this would be my ideal since I'm looking to sell the 1SFH soon anyways and this way I wouldn't need to tap any of my reserves for the new MF down payment.

1) Can I use a 1031 to put towards the multi-unit while still using a 30yr mortgage as primary residence? I will live in ~30-35%of the property, other 2-3units will be rentals.

2) Can I set up an LLC (first timer) and still use a 30yr primary residence mortgage?

If I can't do either/both, any alternate suggestions?

I have a very large basement. I'm thinking about moving into it and house hacking the main residence above as a rental. This place has a very large yard and a pool. How would you suggest splitting and/or managing yard and pool maintenance? Should I charge a flat fee to the tenant and then do it myself or should I let the tenant select their own yard/pool people and just tell them to cover? Or should I just cover? Main house would be about 65% of the property, basement 35% but I expect to fully share yard and pool with tenant as there is no way to section off portions etc. 

I installed solar few months ago; now looking to house hack large basement. Solar generates aprox $250/mo in credits; some months I generate more than I use, so bill is $0, other months bill varies b/c I use more than I generate (think winter), some months I use excess credits generated from other months (say May I generate more than I use, but June I use more than I generate), but it's still $0 b/c just using those excess credits. Avg across all months (from a year of generation) is $250/mo in credits. I want to get my investment back out of this solar however b/c obviously I had to pay a large cash chunk for the original investment. However, how would one suggest a tenant paying for electricity? Also, tenant would be using about 35% of space, me 65%. Would you set an approximate (pre-solar) flat rate cost they pay regardless or would you split any costs with them 35/65 (above the $250avg) and have them also contribute 35% of that $250 (so that it would be like a pre-solar cost percentage split) 

 Hi, I'm wondering if you could share your experience now that you've been in both funds for aprox 3 years? 

How's it working for you? what do you wish was different? If you could go back 3 years ago and change anything, would you (and what would that be)?

 If an LP does NOT meet REPS but DOES have other passive income (say from their own rental properties) could they still use the cost seg/bonus depreciation in year 1 to offset their own passive income (instead of waiting until the syndicator sells to use it then)?

Looking to buy another rental and do a cost segregation to boost tax deductions to offset income from other rentals. Question is, I have these 2 rentals in different states. Do I need to buy the new (3rd) rental in the same state as one of the existing ones to offset this income or is any state fine?

Property #1 in California (I am NOT a resident, only own this as a previous primary; now rental. This is my only income in the state)

Property #2 in Oregon (I AM a resident, technically, but only because I am military. I do not pay regular income taxes to this state however, as military pay is exempt when stationed out of state. Therefore, rental is only "income" to this state. This is, and has always been, a rental)

Both have approximately same income I need to offset. Is it best to buy in CA or OR, or another random state of my choosing if it doesn't matter (for example FL where there's no income tax so I wouldn't worry about later offsetting taxes except at federal level)? Or can income only be offset at the federal level? 

Looking to invest in private equity; looking for referrals/recommendations only from those who have been a lender/investor before in those funds. Want to learn more as well, and only looking for people who have been around for several years, have several referrals, and are willing to further educate their investors as well.  

Please don't email me about your own personal fund, I am only looking for replies from other investors at this point.

Thank you both. The original lease was set that way due to an extended overseas assignment and wanting security not to have to deal with new tenants in the middle of that. It may have been a mistake but it did offer the security needed. I’m positive they know they’re well below, and this is a very nice, upgraded place it’s just a matter of broaching the subject the right way as we start discussions for possible renewal. I think we may go with 20% this year, followed by 15% and we might be near market after that just wasn’t sure if others had dealt with significant increases. 

Long story short, had a very long term lease (5yrs) on single fam home with a small (8%) increase built in already (pre-defined in original contract) in years 5-7 year.  In 6 months we're at the end of year 7, tenant wants to renew lease again BUT we are now VERY below market rate...like 35% below just the avg... How do I increase the rent significantly while navigating a long term very good tenant? 

Also, I don't think the CA rent increase rules apply since this is a single family home (it was previously my primary but moved for military), it's our only one there, and we're in San Diego county. Tenant wants to stay, I want them to stay, but they are at least $12-1500 under market now at $3450, & avg $4700-4900 in 1mi radius.

1) Does anyone have links to actual law on rent increase for my situation

2) How would you navigate this increase?  THANK YOU!