All Forum Posts by: Natalie C.

@Casity Kao Thanks for your thoughts. Yep I definitely will seek advice from a CPA, just was hoping to feel out the real estate / tax minded folks on here to get an idea of what the rules say :)

Hi all,

I have a question about capital gains exclusion (living in property for 2 of the last 5 years). From what I understand, the exclusion is sort of pro-rated (e.g. if one owns a duplex and lives in one unit, then 50% of the gains would be excluded from taxes).

How would this work if one lived in a single family home, and house-hacked to have roommates during the time that the home was a primary residence? Does the exclusion then apply to the whole property, or to only part of the property? If it applies to part of the property, then how is that 'pro-rated' part determined?

Thank you!

@RJ Reynolds Thanks for the input! Good to know about putting clauses in the contract.

I'll amend my post - the state I am working in is Indiana, not Minnesota.

Thank you!

This is a newbie question.

I am starting to 'take action', and my first step is reaching out to real estate agents, which I have already done. I've also been emailing with a property manager, who recommended a REO broker.

If I understand correctly, it is standard to have only one agent you work with.

Do people ever work with a 'regular' real estate agent AND a REO broker? Is that kosher or not? Either way is fine, just trying to learn what is appropriate and what is not.

Thanks!

Hi BP people!

I have market (analysis) paralysis.

I am interested in SFH or small multi-family residence rentals, looking for cash flow but of course would love some icing on the cake (appreciation). If things go well would consider scaling up in the future.

My husband and I own one cash flowing SFH in the Bay Area that was acquired in 2013 as a house-hack (but is currently rented by unicorn tenants who manage the property, so this property doesn't really count for rental experience).

The market where I am from is not great for rentals (SF Bay Area), and the market where we are living for the next couple of years is also not great for rentals at this time (Grand Forks, ND). I also do not love Grand Forks and would rather not put down any form of roots here - this is more of an emotional choice.

I have put in time learning about real estate - going through all the BP podcasts, lurking in the forums, doing due diligence learning about local job trends, populations, schools, etc in the more popular markets (e.g. certain midwestern cities). I am making my way through the books, including David Greene's new book, which was amazing. We have a good amount of capital - would be comfortable putting down $50-100k for the right few deals. We have w2 jobs. We are ready.

Each time I dive into a local market (e.g. Indianapolis) and get ready to reach out to local agents and investors, I get cold feet and shift into a new market, thinking that maybe one is better for me than another. Maybe I am casting too wide of a net.

Long distance investors: how did you finally commit to a market when you felt that you were equally unfamiliar with them all? Any tips to help me shift my thinking would be greatly appreciated.

Thank you!!

@Stephanie Medellin Awesome, thanks for the help :)

Excellent, thank you!

I've been searching through the forums but wasn't able to find a clear cut answer to this newbie/basic question:

There is limit of 10 properties that one can get conventional loans on. These 10 properties can all be multi-family properties, correct? (i.e. one could get conventional loans on up to 10 quad-plexes = 40 doors, before they hit their limit)?

Thank you! :)

@Stephanie Medellin Thank you so much!

Hope everyone is having a great holiday!

Do contributions to my Roth 401k affect my DTI ratio (with regard to a conventional mortgage)?

I have a w-2 job. For example, let's say I were to contribute 100% of my salary to my Roth 401k during the first couple months of 2018 until contributions for that year are max'd out (after maxing out, my salary would be deposited into my normal checking account). If I were to apply to get pre-qualified for a loan during or shortly after this time, would my income appear as $0 because no money was deposited into my regular checking account, and instead was put into a Roth (the contents of which I am not accessing)? Or would they see my salary and that I am simply pushing more money than average into a retirement account?

(My husband also has a w-2 job, we both have excellent credit, and have a solid amount in savings, but if I am correct these things should not be relevant to the DTI).

I have found conflicting information on the internet. I'll also try calling around to different lenders after the new year.

Thank you!