Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here
Pick markets, find deals, analyze and manage properties. Try BiggerPockets PRO.
x
All Forum Categories
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

All Forum Posts by: Michael McDevitt

Michael McDevitt has started 3 posts and replied 102 times.

Post: Under Contract, current tents have no lease

Michael McDevittPosted
  • full-time CPA & part-time RE Investor
  • Colorado Springs, CO
  • Posts 102
  • Votes 46

Be careful! Once, I told the two tenants of a two family I would be increasing the rent to FMV. The seller also informed his tenants that their rents were sure to increase and they would have to sign leases.

I got a call from the guy in the first floor apartment, asking if I would come over and discuss a new lease.  i went to see him and he let me in the apartment.  Three of his friends were waiting for me in the living room.  i am sure I was due a beat down or at least the threat of one.  Luckily, I was thinking fast and made a move before any of them could do anything.  The tenant, who was between me and the front door, got thrown out of my way and out the front door I scrambled!  After I got home, the tenant called and apologized and agreed to leave the apartment rather than have me file a police report.  He did some damage (minor stuff) to the unit before he left. But, I was just happy he was gone and I didn't have to visit the hospital.

Since that day, I am always armed when I deal with a REI situation like that. I have a concealed permit, so no one ever sees my weapon and luckily, I haven't had to use it. But, I will never get caught unaware again.

Post: Taxes after selling a property

Michael McDevittPosted
  • full-time CPA & part-time RE Investor
  • Colorado Springs, CO
  • Posts 102
  • Votes 46

I am a CPA, with 30 years experience.  

First, please see your CPA because this is not a simple answer.  Generally, you are taxed at 15% for a long term gain (owned more than a year).  Note, the gain may be higher than you think, if you have been depreciating your cost basis since 2007.  If your income is high enough, the tax rate may be 20%.

Also, don't forget your state will tax the gain too, if there is an income tax in your state (TX doesn't).