All Forum Posts by: Naomi Hanson

THANK YOU @Andrew Hogan

Thank you @Adam Tafel!

Thank you @Anthony Hanks!

Have any of you been thinking of utilizing the new rules (if you qualify) to deploy retirement assets from existing 401(k)/457/401(a or b) into SDIRA or SOLO401(k)? CARES act allows for distributions up to $100K with NO 10% penalty nor mandatory 20% withdrawal. This new provision, if your plan allows it, enables a person to pull money from their existing retirement plan and either pay it back over three years or pay taxes over that same period of time. NOL can be used at the end of that time frame to reduce tax liability. At the same time, the new regulations allow for the ability to put the money back into another pre-tax account like the SDIRA. Anyone considering how they can use the new rules ( as long as you meet the COVID 19 eligibility requirements) to redeploy assets so they have more retirement assets available for REI?

Wondering if any of you out there are pondering the Opportunity Zone route rather than the 1031? And if so, are you considering DIY or joining into a fund? I would love to hear your opinions and feedback on this option.

@Scott Krone!  Hey thank you for the reply on the post!  That was very helpful!  

Hi @Shawn Long!  The capital gains break is dependent on holding period of the investment within the opportunity zone.  The best I can do if I invest this year, is a stepped up basis points of 10% and deferral on payment of the capital gains in 2026.  The capital gains and depreciation recapture would be waived entirely on the new investment if I hold until for 10 years.  I am unsure if I should consider trying to do it myself or try to partner with someone.  The capital improvement portion of the opportunity zone requirement is "substantial" so i believe it means I need to bring more money to the table.  If I buy a piece of land with the proceeds, it still needs to be developed.  Or if I buy an existing structure, I need to invest an equal amount into the value of the building.  I will check out the form you mentioned!  

Wondering if any of you out there are pondering the Opportunity Zone route rather than the 1031?  And if so, are you considering DIY or joining into a fund?  I would love to hear your opinions and feedback on this option.

Investment Info:

Small multi-family (2-4 units) buy & hold investment in Virginia.

Purchase price: $85,000
Cash invested: $7,000

4 plex value add purchased with 1031 money. Slowly upgrading all units this past year. Increasing rents and passing electric to tenants.

What made you interested in investing in this type of deal?

Larger multi-family with newer heating/plumbing/electric. Steam conversion already finished.

How did you find this deal and how did you negotiate it?

Through an agent in Virginia, MN

How did you finance this deal?

1031 exchange

How did you add value to the deal?

Upgraded bathrooms and kitchens; painted; carpeting/flooring

What was the outcome?

Working on getting new tenant in the most recently updated unit. Increased rents and pushed electric costs. Charging for garage space. Likely to add coin operated W/D in basement in the future.

Lessons learned? Challenges?

Finding a Property Manger for the area! Very mixed feelings about current PM, but can't seem to find another! Another challenge area is finding quality tenants, in particular during the winter months. Longer time to lease up.

Thanks for this question as I have two notes (IRA purchased homes, fixed and then sold and held note). I'd like to have them serviced as I'm concerned about keeping things at arms length. I will likely be adding a 3rd this year! Does anyone here know if there is an escrow option with any of the above-mentioned organizations? In advance, thank you! :)