All Forum Posts by: Navdeep Raj

@Zach Evanish Makes sense.

I was wondering if there are any multi-family turnkey companies that have a marketplace like Roofstock?

@Alpesh Parmar Definitely important to consider cash flow first. This specific property is going to be an exception where I'm speculating good appreciation, while all future investments I'm definitely going to ensure a solid ROI and cash flow :)

Thanks @Michael Plaks

Aah! Gotcha...

That was exactly the information I was looking for :)

Also, if I rented for 3yrs and lived in it for 3yrs, I'm assuming I can 1031 50% of the appreciated taxable portion to a new investment property and keep the other 50% appreciated tax-free (since that was "qualified use") value with me. Pls correct me if I'm wrong... (I'm aware that the appreciated value excludes the 3yr depreciation and sale costs, etc.)

@Michael Plaks Thanks for the very well outlined explanation! 

To Step #6, the 3yr grace applies anytime after a 2yr primary residency right? (doesn't have to have started property as primary from day 1 of purchase) and to my prior point:

the last 3yrs will not be taxed then?

Thanks! If I understood right, any time before the property is made primary is taxed. When I decide to live in it for 2yrs, it's going to be treated primary and after that if I rent for 3yrs, I'm not taxed for those 5yrs (given section 121) and if I chose to rent it for more than 3yrs, I should make sure, some time in the last 5yrs before the sale, I should've lived in it again for 2yrs. Right?

Thanks @Ashish Acharya. What if I rented for 2yrs, then lived in for 2yrs then rented again for 3yrs? Is gains only for the first 2yrs or the first 2yrs + last 3yrs?

Can I immediately convert my investment property into a primary and live in it? How?

I'm in the process of purchasing an investment property in Austin, TX. Without lot of research I assumed if I lived in the property for 2yrs in the last 5yrs of the sale, I could be eligible for the exemption so I don't pay any capital gains up to 500k (I'm married). 

Based on another thread, looks like its not the case :( Other than the "qualified use" time in the property, looks like the rest of it is all taxed? I'm wondering if there are other options to avoid capital gains (other than the 1031 exchange).

First question is what defines if a property is investment or primary? The loan type? 

Let's say I rented the property for 3yrs, moved in and re-financed as a primary and lived in it for 2yrs. Will I still pay capital gains for the first 3yrs? What if it was an investment for 5yrs, then I re-fi as primary and lived in it for 3yrs?

Right now the property is just in my name. Is it a stupid idea to "sell" the property to my wife as a primary right after I purchase, then live in it for 2yrs and then rent it out for 3yrs?

Why do people who buy as primary, live for 2yrs then rent for 3yrs get all 5yrs tax exempt! vs starting out as an investment and then deciding to make it a primary so expensive?

Thx for any inputs :) 

@Dave Foster Thanks for the insights. I'm assuming I can do a 1031 exchange anywhere in the country right? and from a SFR to a 2-3-4-plex rental?