All Forum Posts by: Patrick Irish

Two different topics/questions therefore 2 different threads.

Cash out won't work. Rates too high, I couldn't rent to cover the cash out of $400k+. HELOC also won't work, won't loan the amount we need

I’m not satisfied by my own rudimentary following of 1031, 131 and other means of saving on taxes as they are written. I know there’s the way the laws are written and then how they are interpreted. Being a landlord is not my 9-5 clearly.  

Projections, best ways to save on taxes, and other options are what I’m looking for. Not sure if the $5k and them providing all that will help or not. If the $5k saves me $10k or more on taxes I’d say that’s worth it.  

I’ve been quoted $5k to have a cpa tax attorney (firm) crunch wife and my numbers to determine possible cap gains on sale of rental. They’ll determine best route in how to essentially to pay the least amount in capital gains, should we sell, 1031, invest etc. being attorneys they can do a little more than CPA’s my research says. 

Wondering if the $5k and an about a month time is worth it? 

My understanding is in their ‘opinion’ they can be creative in some areas of 1031 or 121. 

Wife and I are late 30s with two little kids and the $5k could fix both bathrooms in the rental we want to sell. Granted there is some peace of mind having a tax attorney cpa sift through our financials and dates and lay out for us various plans. 

I have a townhouse in the Bay Area norcal. Bought 12 years ago. Been renting it out 3 years as of March 2024.

Recent townhouse sold for $980k in my development in 6 days, $150k over asking (2/2, 2 car garage 980sqft). I bought mine for $375k, put about $200k in it. Did do the deprecation thing at least last 2 years though  

Wife and I FEEL we need to sell in order to use the equity for a down payment in order to stay local. Pretty close to being priced out actually.  

We told tenants and they moved out May 31st.

Is there in wiggle room in the 2 in 5 years in order to meet the $500k capital gains exemption? I think I had tenant move out like 2-3 months too late. 

1031 wise, do I have to rent it out for 2 years in order to avoid cap gains? I’d for sure lose $$$ with what rents are vs mortgages. Any creative ways to move into the house and not make it a primary? 

Last option an attorney told me today is send some bills over and ‘move in’ for the next years, maybe rent to a friend. I’d lose about $48k (mortgage, hoa, ins and prop taxes). No way we could move back, have two little kids and too much stuff for 980sqft. Only issue is housing will for sure go up $48k in the next two years. 

I have a phone consult with a tax attorney cpa tomorrow, hoping to determine capital gains if we sell but wanted to get some thoughts first. 

The $1,200 includes deductions from the mortgage, hoa, insurance, and property taxes. I know there might be other costs. My plan to mitigate those fixing up costs if the occur to do them myself. The house is remodeled and everything is top quality. I didn't fix it up planning to rent so I didnt cheap out on product. 

Anyone?

I'm debating selling or renting out the townhouse I bought 11 years ago. I'm bay area northern california. Very hot real estate market. 

House is worth at least $790k in todays market. I owe $288,000 and refinancing to 2.625%. I should be able to rent for $3200 and be about $1200 positive a month. Theres $400K+ in equity. Sell or rent it out? Wife and baby just signed up for a 1 year lease in a larger house cause we ran out of room. That's $4200 a month. Renting my place would make that rent more palatable. If I keep it, that's about $400K in positive cash in 30 years plus the house is paid off. If I sell it's $400+k in my pocket BUT not assets and it's not enough to put down on a house around us we want. I think I could make 10% easy a year on that $400K investing plus wife and I still working making money. Any thoughts? Likely sometime I'm not seeing.