All Forum Posts by: Account Closed

Hi BP.

I am considering renovating my coop in NYC. My coop board gave me insurance guidelines which had requirements for umbrella insurance in addition to general liability. I expected general liability, as I've had to submit COI to the building before for other work, and the requirement I was given was to have general liability up to a certain amount. My contractor also has general liability insurance, so no issues there. 

I did not, however, expect umbrella insurance. My contractor also doesn't have it. 

1. How common is umbrella insurance as a requirement in NYC coops? 

2. My contractor doesn't have umbrella insurance. Is that a bad sign? Perhaps not experienced?

Does anyone have experience using Homeward (https://www.homeward.com/homew...)?

It seems like a good program. They do charge anywhere from 1.9% or more, but that's only if you don't use them for the actual mortgage. And supposedly they match rates from other lenders. Sounds like a good idea all around. But was curious if anyone here have real life experience with them.

thanks for the comments guys. very helpful

Thanks @Dave Foster 

What are the cons of doing the 1031? Let's say they swap it for 3 properties. The only con I see is that all 3 properties need to close within 180 days. If we miss the deadline, the tax bill will be hefty. So we need to have our acts together, not waste any time, and hope the seller of all 3 properties are also quick. 

I've never done a 1031 exchange before. Is this a real concern?

thanks Dave. So isn't that an argument for 1031 instead of 121? Seems like with 121, even the best case scenario, we're talking about paying taxes on the $250k cap gain (ignoring depreciation recapture and proration)

While with 1031, we're not paying taxes at all. 

My parents bought their primary residence 30 years ago for 250k. It has appreciated to 1M. For the past 5 years, they've renting it out and have been living somewhere else.

They want to sell it in a way that has the smallest tax bill.  They plan on buying multiple properties with the proceeds, and use the passive income to fund their retirement. 

They want do the 121 exclusion for 500k as a married couple. So move back in and live there for 2 years. Sell it for 1M, cap gain of 750k. 500k gets excluded. So pay taxes on 250k. 

Or, they could sell it right now and 1031 it into multiple houses. Since it's 1031, they pay no tax at all. 

Seems to me that 1031 is the smarter way to go here. Did I get that right?

@Mike D'Arrigo 

what online website or tool did you use to find population and labor participation rate of Meridian?