All Forum Posts by: Khoa Ha

@Michael King any question is fair game once I submit my post. I do want to do a 1031 exchange but since the other partners do not want it the next best thing is to cash out and find something that I have 100% control over in the long run. 

Thanks,

Khoa

@Michael King

Yes we did a refinance a few years back. The numbers I provide was a rough estimate. 

Thanks,

Khoa

Thank you @Scott Jensen for providing a few terms that I can lookup and do more research on.

Hi @Michael Skoczylas

• 1) Everything is under sister name.
• 2) Primary resident.
• 3) Will take Natalie Kolodij advice and talk to an accountant.
• 4) That might be another option. @Matt Ward

Thanks @Dave Foster

I spoke with you in the past about the 1031 exchange. But like I have responded to Jaysen Medhurst I cannot get it through the other that we should do a 1031 into a larger property. I gave up trying and will want to cash out and go solo. That way I can do what I wanted to do. If I ever need help with the 1031 exchange I know where to look.

Thanks, 

Khoa

Thanks @Natalie Kolodij. I will look into someone that know more about the tax regarding this. 

Thanks,

Khoa

Hi @Jaysen Medhurst

To clarify: everything is under my sister name only. We structure the investment that way because at the time we didn't know better. You mentioned that for gain over $705 the tax will be <13%. If that is the case then it will be great. Ill do more research on this. 

As for why not doing the 1031 exchange, its a long story that was why initially I didn't want to get into it. I told the other partners that we should do it if we can find a larger property that cash flow better than the current one. However, no matter how I explain it they still does not get the idea that we now have more equity in the property and the return on the investment is no longer as big as they think. For example, the down payment was $100,000 when purchase. Net Income was around $2000 per month for an annual return of 24%. Now we have around $800,000 - $900,000 in the property. The NI is around $3,000 give or take. That is a return of around 4% - 4.5%. So when they say we cannot find another property that will return around 24% so it is not good to do a 1031 exchange I stop trying to explain. Hope that make sense. 

Khoa

I have a question that I hope I can either get an answer or direct to someone that can help us out. 

Our current situation is that an investment property we acquired in 2009 is under my sister name. She is single and does not have any children. We bought it at $530,000 with 20% down ($106,000) and it is now value around $1,300,000. The loan balance is currently at around $400,000. We have decided not to do a 1032 exchange because some of us do not believe that the market will continue to rise. In other word we might be able to acquire cheaper in the future (please no debate on which way the market will be heading). 

What is the best way to minimize the tax on the capital gain or will it just be a flat rate on how much we profit after the sale? Do I need a financial adviser to help us with this?

Thanks,

Khoa

@Su Lee if you are looking for a real estate professional to work with then please let me know. I live in Garden Grove and might be able to help. 

Khoa

Hi @Seung Oh,

Here is my two cents. When the time come that the real estate bubble pop I believe the stock market will take a dip as well. So investing in the stock market instead of real estate because you are afraid the market will turn bad does not make sense to me. Now I do not know much about the Bay Area other than that it is expensive. I agree with @Dee Tatum suggestion and would like to add to it. If you can find a multi unit that cash flow positive then you shouldn't be worry about the bubble pop because when it does you can use the saving from the cash flow to purchase more properties. 

Khoa

Sorry didn't pay attention to the date the original post was. 

@Dustin Bergeron,

Wow, that is a very high tax rate. Thanks for the information.

KH