All Forum Posts by: Michael B.

@Nicholas Aiola - My wife and I currently own a few properties that we have split between us in title and mortgage to allow us to continue getting conventional mortgages by having them owned individually.  Currently our property management company issues each of us a 1099 for the rents at the end of the year and I wonder if that is necessary?  

Can I have all the property rents listed on a single 1099 issued to one of us even if some of the houses titled and mortgaged by the other?  We file married jointly so I'm wondering if the IRS would consider a single 1099 with everything under one person the same as two 1099s, one to each of us?

Thanks for helping answer these questions.

Thanks @Jeff Copeland and @Dave Foster.  I've already talked with my lender who is fine with it as we are closing out my mortgage as part of the process.  I just wanted to verify things as I would expect my wife to now get the 1099 for income in her name instead of mine as in years past so wasn't sure if that would raise any issues on my taxes.

Thanks @Jeff Copeland, I realize my post might be a bit too much info, but that's basically what it boils down to in the end.

Is adding my wife to the deed (both of us on it at that point) and refinancing in her name to pay of my mortgage considered a sale?  Can you do this same day or does it need to have any seasoning period?

If I add her and remove myself from the deed is that a sale? 

If it matters, we do file joint taxes.

I'm wondering if there are any tax implications for "selling" a property to my spouse and want to verify if there is a certain order I need to do accomplish things in to make sure it goes smoothly.

I have 20 rental properties with title and mortgage in my name only, 10 with conventional financing, 10 with a portfolio loan.  I'd like to "sell" my spouse 10 with the portfolio loan so she can get conventional financing on all of them.  I know there is a six month seasoning requirement for non-arms-length transactions so planning to get a portfolio loan for those 10 in her name only on the loan and title.  After the six months, refinance to a conventional mortgage for each of them.

I read over IRS publication 544 and found a section about not being able to deduct losses which shouldn't be an issue as they have appreciated, but it also mentioned owing taxes on gains.

Questions:

• Since between spouses, do I need to pay on gains and depreciation recapture?
• Can I do this in one transaction or do I need to add her to the deed first and then refi?
• Does it make sense to just add both of us to all the deeds and then just get the mortgages in one name?  Is that easy with conventional?
• My property management company would issue two 1099s, one for each of us, do I combine rent/expenses for the year per property, do do I need to list properties twice to ensure the 1099s match?
• Anything else I'm missing in this process?

Thanks

I've been sitting on nine investment mortgages for a while now because I was holding my 10th mortgage for a primary residence.  After reading over the Fannie guidelines (https://www.fanniemae.com/content/guide/selling/b2...) it appears I was doing that for nothing as the primary residence is excluded from their caps.  For those that have purchased their primary after hitting one of the various caps in mortgages how was the process compared to purchasing your primary before the caps?

• Did you need 25% down like the investment properties or could you go back to 20% or even less?
• Were the rates the same or did you pay a .5% premium like an investment property?
• Any other concerns I should have if I decide to buy a 10th investment prior to my primary?

Thanks for the info Chris, guess that means I'd have to do it at a 2:1 ratio for it to work which makes it harder to pull off.

I currently own ten rentals of which nine have conventional mortgages.  I know I can get a 10th mortgage before I can no longer get a conventional mortgage.  I realize that at that point most people go with a portfolio lender, but I was wondering if I could shuffle stuff around to open myself up for more conventional loans.

I've read a few posts about it being hard to find HELOCs for investment properties, especially when over four mortgages, but let's assume I can find a lender to loan at 75% LTV. Could I get a HELOC for the sold off house at 75% to pay off mortgage #1, then the other 25% for a down payment on new mortgage #10? Then do this again for #2, #3, etc.? I realize that once I get to the newly purchased houses I likely wouldn't have enough equity to continue, but at least for the ones I've owned for years I could likely buy myself some additional time until

Basically I'm trying to convert conventional mortgages over to HELOCs.  Would that then allow me to get ten more conventional loans?  Am I missing anything, aside from the challenge of finding a lender?