All Forum Posts by: Chris L.

@Roy N.  If. Property is 70x100 corner lot but Front yard must have 15 feet, rear must have min 45 feet, street side 15 feet and other side of house 5 feet. Setback for driveways 10 feet. Not sure how to take all of that into account. 

HI there,

I am selling a single family teardown that's on a 70x100 corner lot in a town that is mostly two families. Lots of tear downs going on here. The house is on a corner lot with a sidewalk on one side and no sidewalk on the other. My understanding is that builders can't build as large a building on a corner lot.Is that true?  If so, how much does one deduct in price on a corner lot?  How do I figure out how to price my property since it's not a new or old two family but an older single family?  

Ok,thank you so much for explaining @Frank Chin!  I greatly appreciate it! 

@Frank Chin  I see..It's a RENTAL property thats selling. .So for hypothetical example:

Building at original purchase =150,000

Land at original purchase      =200,000

Depreciation used over time  = 50,000

Recent Sale Price.                =500,000

So. using the numbers above,  would I would have to recapture the 50,000 in depreciation and pay INCOME TAXES on that 50,000 of recapture and then also pay capital gains taxes on the 150,000 gain?

@Frank Chin and @Dave Toelkes  I read this article below (see link) and it makes it seem like if you sell the property as a tear down that when you sell ..you can apportion most or all of the sale price to the land and have lower taxes that way.  It was a bit confusing and I wasnt sure if it applied to me or not as I had already taken depreciation so I figured I would have to recapture it and pay taxes on it any way.

http://www.fticonsulting.com/~/media/Files/us-files/insights/articles/saving-depreciable-tax-basis.pdf

Just for general knowledge...When a property is sold as a tear down, do they assign the entire sale price to the "Land" or do they split it up between Land and building-even though the value is all in the land?

@Frank Chin I have held theproperty long term and there was a value assigned to the building...It was not 0

Hi there,

I am selling my rental property as a teardown to a builder.  The value is in the land. I was wondering , since it's being bought as a tear down, if I would still have to pay income taxes on the depreciation recapture of the building or if the whole sale price would apply to land only and qualify for a lower capital gains tax instead of paying income tax on what depreciation capture. 

Thank you

@Michael Greenberg and @Ozzy Sirimsi for the info and notice about the podcast

@Peter R. Do you know what your yearly % return on investment is after expenses?

Hi all,

I have been a landlord for sometime and am thinking of getting out of this business and am interested in short term vacation rentals. Fort those that are doing this as their main income, how did you get started?  What type of return do you make on investment? Are there certain rental locations you find most lucrative? Do you have to hire a rental manager and what % do you pay them?  Do you buy houses, condo's or other?  What do you have to look out for or be concerned about when purchasing a property to use as a vacation rental? With Air B&B, don't you get hit with a lot of charges and do you still make a  good profit?  Any advice for someone just getting into this area?  Thank you for your input.