All Forum Posts by: John Woodrich

 Funny hearing this from someone who works for a large property management company :) 

Zach Robbins is who you are looking for.  Was at Winthrop but may have changed firms recently.  I would search around for him.  He is a MN attorney.

 Not all mortgage payments require using escrow for taxes and insurance.  Non-conventional purchases (CD) also typically require you pay insurance and taxes separately.  

As mentioned the family will get a step-up in basis to FMV at date of death. So if sold at the FMV amount there is no gain or loss to be reported. If it ends up stuck in probate for a year and you sell it for $50k higher than date of death there would be a gain based on the difference. Not common though.

No tax considerations at play for CD when there is no gain or loss.  There is always that relative who already spent the cash they don't have so I don't see a CD working well for you here.  Also they may think you are trying to get a "deal" which could lead to some family drama.  Hold tight until it is ready to sell and see if you can buy it.

@Bruce Runn Some cities don't like mobile homes/trailers and some seem to be ok with them so long as the axles are removed and they are attached to the land.  I would guess that MPLS doesn't allow them but it could be a cheaper option in other areas.  

At $300+ per sqft I have to imagine there are some new construction options that are available.  I didn't attend the meet up but imagine they can be built quite a bit quicker than new construction and maybe with less hassle but who knows.

Has anyone talked to the city to see if a Park Model Trailer on a foundation would qualify as an ADU? Limited to around 400 sqft but probably half the price. I believe some cities will consider a park model a dwelling unit if it is attached to the ground.

Hi Hang,

Reach out to @Brad Schaeppi at MN Landlord Law.  He can help you with this stuff.

You aren't going to avoid any taxes if you are flipping and acting as a realtor.  Bruce's comment relates to tax savings and intent - you can't avoid that.

If you are going to do deals you will save money and can make money being a realtor so go for it.   Do what you can to make money (sell homes) and save money (list homes yourself) and plan for taxes on the back end.  Don't have to worry about taxes if you don't make any money.  Once you make money talk to your CPA about tax strategy.  

 If you are flipping homes it won't matter.  Get your license and do some deals.