All Forum Posts by: Nathan Simons

Back story : I have lived in my home for over 2 years now and currently the value has gone up about 80k. If I rent this home out for 1-2 years can I still sell the property tax free since I lived here 2 out of the last 5 years?

Also, do I need to change my loan agreement to a rental loan?

Thank you and look forward to your responses. Cheers!

1 Vote

Hello everybody!

I am looking to move out of Milwaukee soon and I think my current home would do very well for a short term rental here in Milwaukee around the Bay View area.

Is it worth getting a property management company to do all the work for me?

If so, does anyone have any suggestions or recommendations?

Thank you much!

0 Votes

Hello everybody! Okay so I will quickly describe the background details of the deal and want to know the best route to lower the taxes that I will owe after the sale of this duplex.

I have a 50/50 LLC with my business partner. In January 2019 we bought this duplex for $63,000 with 20% down payment.

In August 2021 we sold and closed on this property for $133,000.

Once all was said and done they sent us a $77,000 check.

Now we will be taxed on whatever profit we made and I don’t even know how much we will be taxed actually.

My question is should we buy some office materials like computers and desks to help lower the taxes that we owe?

Any other suggestions on what we can buy for the business to lower the taxes?

Thank you much!

0 Votes

Originally posted by @Marcus Auerbach:

Originally posted by @Nathan Simons:

Hello everybody!

I have an idea and I want to ask the BiggerPockets community if this is feasible.

Okay so here is the idea I am having...

I currently own a primary residence for 1 year here in Milwaukee, WI. It is my first official home and I put 20% down. I am thinking on getting a FHA loan for 3.5%-10% down to buy a duplex. The goal is to rent out one side of the duplex to pay for the mortgage and keep the other side vacant for a year while I fix it up. At the same time I want to keep my primary residence that I put 20% down for.

Is this possible to do?

Thanks all!

Hi Nathan, not in this exact way, but with a twist. You can use an FHAloan with 3.5% down to buy a duplex. The issue is that in order to use an FHA you have to move into the duplex within 60 days and make that your primary residence. You can still keep your old single family, but it looses it's status as a primary residence and you can rent it out. No changes on the loan though.

The second issue is that I would not recommend an FHA loan in the first place: they are not popular with sellers because of the FHA inspection. Milwaukee has lots of old buildings and they always find something to throw a wrnch into the gears a week before closing. Also an issue with FHAis you will pay PMI for the life of the loan, 30 years or until refi. Much better to get a conventional 5% down 30 year fixed loan, you will pay PMI as well, but only until you can show 20% equity, which should be faster if you make improvements. I also have a lender who does 5% down no PMI on a 5 year ARM, which is a pretty ideal product for what you want to do.

I appreciate this information. Would you mind sharing with me your lender's contact information? Thank you so much!

0 Votes

Originally posted by @Nathan Regina:

Hi Nathan, another Nathan here. I just closed on a rental property this past week after going through the same process you are going through. It is possible to do what you are saying but I ended up using cash to put 15% down on a property verse the FHA loan. The requirements seemed strict and you HAVE to live there for 12 months or establish it as your primary residence.

The other issue, that has been referenced above, it the amount of repairs a seller must take on. If you are purchasing a duplex or multifamily home there is a chance you will buy it from a seller that has multiple units. But the seller either has to be handy or connected to many people who are handy. My investment property required a new water heater, new HVAC venting, upstairs deck replacement, and a toilet replacement, that was just to get up to code. If I had done an FHA loan the repair list would have been even longer (banisters, locks, door replacement, repainting, and more).

Thank you so much for this information!

1 Vote

Hello everybody!

I have an idea and I want to ask the BiggerPockets community if this is feasible.

Okay so here is the idea I am having...

Is this possible to do?

Thanks all!

2 Votes

Hello everybody!

I purchased my first duplex earlier this year in February. Taxes are around the corner and I am looking for what I should look out for when submitting my taxes. What should I look for in choosing my accountant? What are some things that I can easily deduct? Do I combine my personal taxes with my LLC's taxes from my rental property?

Just looking for a step in the right direction when submitting my taxes this upcoming year and hopefully it will become easier year after year!

Thank you and Happy New Year!

1 Vote

Hey all!

I had my first showing this weekend and I had 4 people fill out the rental application on Zillow and pay the $29.

My problem is that it has been THREE days and I still have NOT received the applications.

Why is it taking so long? Has anyone else had this problem? Thanks!

0 Votes

Originally posted by @Mark Fries:

@Thomas P.

I love it! Use it weekly

Hey there. I have had a couple people submit their applications and pay the $29 and it has been THREE DAYS and I have still NOT received them. Have you had this problem?

Thanks!

1 Vote

@Nathan G. Thanks for the tip. Would you recommended I hand this letter to him in person or send it in the mail?

1 Vote

All Forum Posts by: Nathan Simons

Nathan Simons has started 9 posts and replied 16 times.

Post: Should I turn my primary residence into a rental property?

Post: Looking for Short-Term Rental Property Manager in Milwaukee, WI

Post: Just sold my duplex. How can I save on taxes that I will owe?

Post: FHA Loan Hack Question

Post: FHA Loan Hack Question

Post: FHA Loan Hack Question

Post: Key tips for upcoming 2019 tax returns

Post: Can’t view Zillow Rental Applications

Post: Has anyone used Zillow rental applications? Your experience?

Post: Tenant is 3 days late on rent