All Forum Posts by: Elizabeth Goff

You can only 1031 rentals, not flips, so that may be a consideration. Technically it depends on what your intention was....if you meant to rent it and then decided to flip it might be ok.  But personally I am conservative and wouldn't try it.

Your comp is not really a comp --- that is a duplex. Even though it's roughly the same size the valuation is different. Are there others SFH's that have sold and how do you compare to those? Did your realtor give you this one as a comp? If so you may need a new realtor :/

Generally I agree with your agent... some of it is timing.  November isn't a great time to list a property, but not a bad idea to put it out there and see what happens.  Now that there's been no movement, take it off the market and put it back on in March (or mid-Feb if you need to).  Yes some of it is about weather, but it's also about buyer mindset.... the holidays have everyone's focus at the moment.  

And as another note, I think there are some changes you should make to your photo selection!  PM me if you want to discuss.

You did a nice job on the place, congrats!

The cashflow you stated is only 3% return, and that's low even for California.  I'd sell it (since there won't be cap gains taxes), pay off your student loans, and then invest the rest in real estate or otherwise. Think of what a relief it will be to get those student loans off your back!

 You **absolutely** need a landlord insurance policy on the building as well (and this also includes some liability coverage usually).  Renter's insurance only covers the renter's belongings and and damage that they do with negligence (eg leaving the bathtub running).  If the house burns down or otherwise, YOUR insurance is what covers that incidence. Or if anyone is injured on the property that would also be covered within the limits.

Thanks for your thoughts, agree completely!

Personally I would just buy with cash now, and then you can finance it later if/when you find another property you'd like to purchase.  Will just make the transaction with your family easier, and rates aren't that good right now so wouldn't jump into a loan if you don't need to.

FYI I doubt you will be able to split water meters by unit. I own several duplexes and triplexes in different states and all of them have one water bill, which I pay. But that doesn't mean you can't split it and charge-back the individual units. That said, it's easier to get a sense for how much water is per month and just charge them the same every month... a management hassle to charge them the actual amount from the monthly bill.

I just found out the property manager of a duplex I own in Texas is only running applications concurrently.... so if the first one fails/drops out, then they start on the next one... which obviously can extend the time to get someone placed.  This is not how my other property managers (or I) process applications, albeit in different states.  I run at least two that look good on paper and choose the best.  She is telling me that that is against the law and/or code of ethics to charge app fee and process more than one at a time in Texas as you are promising/selling the same unit to multiple people.  Doesn't sound right to me, but wanted to get feedback from those of you who know the rules in Texas!  Thanks in advance.

I'm not a CPA, but if this was given to you when your aunt was alive then it was a gift, not inheritance.  It's better for the recipient to pass properties off upon death as the cost basis gets stepped up to the market value upon death.  As a gift, however, the costs basis remains at her cost basis (plus any improvements you've put into it).  If you end up renting it then selling it, you should be able to do a 1031 exchange when you decide to sell.  Or if you can move into it for 2 years you can take advantage of the $250k cap gains exclusion.  I would do the latter if it makes sense for you as that exclusion is permanent and you will never have to pay taxes on that $250k, vs possibole multiple 1031s.  

If you really want the cash now then yes just take the tax hit... or do a cash out refi.

@Drew Sygit no actually it is when Strategy Properties/Proway was 'bought' by Autumn Property Management (Detroit). No comment :/