All Forum Posts by: Logan I.

Scenario: Property purchased for $200,000 and put into service as rental property. Ten years later, investor moves back into the property for a period of two years and sells for $300,000. He has accumulated $30,000 in deprecation over this period. Investor wants to make use of the primary residence exclusion.

Question 1: Is the entire gain tax free for the investor, even though he only lived in the property for 2 years of the past 12, or only 1/6th of the gain tax free?

Question 2: How does deprecation recapture play into this? Is deprecation still tax free as long as the total of the gain+recapture is below $250,000, or is the deprecation recapture taxed in some other way?

Thank you so much for any assistance!

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Approximately 4800

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Hi all -

I am in the process of closing on my third property, which will be under management with the same company I have been with for years. I am currently paying 10 percent. I was considering asking for a reduction to 9. Is this appropriate or customary or am I just nickel and diming?

Thanks!

Logan

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I am a NYC suburbs local but out of state investor. I will tell you I have looked high and low in the suburbs of NYC to find something I can make work, and it essentially does not exist. Even the handful of viable deals I have found have left me with pause when I start to envision the future of this state in general and especially landlord disposition in the eyes of state and local government. I would strongly suggest you look elsewhere - there are hundreds of excellent markets in this country.

If you have specific questions about the Westchester area, I would be happy to oblige.

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Originally posted by @Jerry Padilla:

@Logan I.

There is a restriction to the number of units that you own to be eligible for an FHA loan. 7 total units, including the subject primary residence. So, if all your 4 mortgages are duplexes - you won't qualify. If they are a SFR than at most you could purchase a triplex. Let me know if you have any other questions.

FHA Unit Restrictions - Chapter 4, Section B, page 13.

Thank you Jerry this is extremely helpful and exactly the info I needed.

1 Vote

Originally posted by @Brent Coombs:

Originally posted by @Logan I.:

Hi All -

Must an FHA loan be one of your first 4 mortgages or is there no relevant restriction? To put it another way, can a 5th+ mortgage be an FHA loan? Are there any other relevant considerations surrounding the number of mortgages and FHA?

Thank you in advance.

These days, isn't it ten mortgages? (Didn't "4 mortgages" go out the window years ago?)

My answer would thus be: yes, it would need to be before your 11th mortgage.

[Not an official response. Others may have better knowledge. If so, please respond]. Cheers...

Thanks @Brent Coombs for the reply. Yes the total limit is 10, but the requirements become more stringent on 5+ and I am just wondering if any such restrictions apply to FHA.

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Hi All -

Thank you in advance.

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Originally posted by @Jeff Bridges:

Originally posted by @Logan I.:

Thanks @Jeff Bridges, that is an angle I had not considered at all. Based on your advice, I've decided to password protect the site and only allow access to potential tenants that I am hand-selling to.

Any thoughts regarding the credit card?

What exactly is the purpose of your website with your tenants or anyone else for that matter? investor reputation? online application? You realize that even hand picking your tenant applicants and providing them access, they can see your entire portfolio during the application process. Cozy lets you send online application without showing your entire portfolio as does other online applications. Why cant you just send them a cozy application URL via email when they are ready to apply and it goes inactive when not advertised. While big multifamily buildings need to advertise all year long; you only need to advertise during your vacancies so your public exposure only needs to be a minimum. think anonymous and not link any properties together on the interwebs unless necessary. Only your bank needs to know your portfolio. You get even more anonymity by advertising through a property management company where renters dont interact with the owner at all. That only applies if thats part of your model. I have a mix of PM managed and self managed, but I'm going to all PM managed for new acquisitions as a grow my portfolio for more passive approach since I have a full time job and live farther than 1 hr away from those properties.

I dont know what your concern is with the credit card? umbrella covers liability claims against you as a person and your rental business. Your credit card has zero bearing on that exposure. its just a payment vehicle. no one even looks at whats embossed on it or what your signature is for that matter.

Thank you again. Great tip on Cozy and a lot to think about regarding the other suggestions.

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Thank you @Frank Chin that's quite a story.

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All Forum Posts by: Logan I.

Logan I. has started 4 posts and replied 12 times.

Post: Two Part Question on Sale of Rental Property

Post: Two Part Question on Sale of Rental Property

Post: Is it appropriate to ask for a fee reduction in PM?

Post: Is it appropriate to ask for a fee reduction in PM?

Post: New York Nightmare Market???

Post: Can a 5th+ mortgage/FHA

Post: Can a 5th+ mortgage/FHA

Post: Can a 5th+ mortgage/FHA

Post: Am I playing with fire on my umbrella policy?

Post: Am I playing with fire on my umbrella policy?