All Forum Posts by: Manuel Naranjo

@Basit Siddiqi That is great information. Just what I was looking for. Thank you so much for taking the time to help me.

Thank you very much @Ashish Acharya @Michael Plaks and @Wayne Brooks . For your advice

Thanks @Logan Allec for the quick response. I have not used the exclusion on any other property. What it kills me is that my CPA keeps telling he cannot find "the code" to put it on the system. So at this point, I really don't know what is holding him up. And thanks again for the info

Hello my BP mates!!

Just have a little question about sale tax exclusion. I purchased a townhouse back in 2008 and lived there until December 2014 when I rented the property and moved to a single family home. I sold the rental property in June 2017 (to be between the 5 years period the IRS mentioned) to be eligible for the$250,000/$500,000 Home Sale Tax Exclusion. However, when I was filling my taxes last week, my CPA (future former CPA) didn't know much about how to apply this exclusion on my taxes because it was a rental by the time I sold the property. His answer was "I cannot find the code to do this, I need to look for it". I'm wondering if any of the more experience CPA members can give a hand on this so I can guide my CPA and close this chapter of my life with him. Thanks!

Sorry @Wade Fisher @Kenneth Mooney for my late response. I was traveling. All you said make perfect sense. Thanks so much for the advice. I like the option of buying cash and maybe refinance later on. However, here in Florida is hard (Not impossible I guess) to get a house in full for that price unless you buy in a really bad neighborhood (what i don't want to do). And invest out of the state is not an option at least right now because I'm new on this business and I want to get more experience in a place where I know the area.  

Thanks @Wade Fisher and @Kenneth Mooney for the quick response. So I guess the best way to do it is some kind of hybrid approach. Right now I'm looking into a duplex with following characteristics:

Asking Price: $374,000

Fair market Value (Based on comps): $ 378,000

At this point I'm planning to offer something around $348K (8% discount). The property is in good conditions and I think it only needs around 10K in minor fixes. Both units are currently rented at $1600/month giving a Gross rental Income of $38400/year. total expense are around $10,600 or $25,800 NOI. With a 20% down the monthly cash flow will be something around $800 and annual cash on cash of 12%. Usually I look of a monthly cash flow of $500 per unit or 10% cap rate. So even if I'm not meeting my cash flow standards, I believe is still a good deal. What do you think guys?

Once again thanks so much for your advices,

Manuel

Hello everyone,

 It may sound silly but I'm having a hard time determine the right price to offer for a duplex especially if one the properties is occupied by the owner. Some books said just valuate based on "comps" like any other single family home. Others are more into cap rate like any big multifamily or commercial, but if I do this and come with the final offer price based on just the side rented income, the difference between asking price and offer is astronomical. At this point and don't know what is the best approach, so if somebody can help me with this will be really appreciated.

Thanks @Brandon Hall

Thanks @Wayne Brooks for the reply. I guess I need to start the preparation for the sale. Current tenant lease ends after my grace period. Maybe something like "Cash for keys" to get some kind of deal with him. What you think?

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