All Forum Posts by: Kwesi S.

Here is my understanding just need a little bit of clarity. With bifurcation you can legally depreciate the value you of your investment property (the building (3.5%) home improvements (5%), and personal property (20%) annually on your taxes for a tax break. However if this investment property is sold for more than you told the IRS it was worth, they would take a bigger chunk of your profit.

However if you were to do a 1031 exchange, the IRS would not require you to pay this money back right away. Is this true? Is there something that I am not understanding? Does not seem to be illegal. Anyone know more about this? Sounds like a great way to build wealth to me.

Just really want to know how bifurcation relates to the 1031 exchange

Can someone tell me how bifurcation and 1031 exchange works?

I posted this topic because I was going through different forums and many people were mentioning that they or someone they know never tells there tenants that they are the landlord. This is not something that I want to do. It was actually done to me when I was in college. My landlord told me he was the property manager but I later found out that he was in fact the landlord and when I approached him about it he was very surprised. Thanks for the advice.

1) Is it a good idea not to tell your tenants you are the landlord if you owner occupy? If so, why? If not, why?

2) If your tenants are under the assumption that you are managing the building and not the landlord, if they pay rent with a check who would they pay the rent to? LLC? Can you have an LLC with an First time home owners loan?

Mike this is a great question and I hope it generates more responses since I am kind of in the same situation. I would like to use RE to help pay off my student loans a little quicker

Thanks Marco. I really appreciate the response!!!

Can someone explain to me what the 50% rule is? or point me in the direction to find this information?

I am interest in knowing what the experience was like for investors who purchased buy and hold(s) while they were still renting. Would you advise a new investor to do this or would you advise against it?

All responses are welcome but I really would prefer responses from those who have actually went through this.

sorry, googled.