All Forum Posts by: Mark C.

Hi, I have an idea to maximize selling my properties with no notes on them using 1031's and thought I would bounce it off y'all because the wife thinks it seems to good to be true. LOL. Based upon the cash I would walk away with from closing, I was looking to invest in anywhere from 2-4 properties. My thought was to maintain cash flow as good if not better than what the current NOI is with the property paid off. I would target properties needing rehab with hard money $140k or less range with rehab costs of $25-35k and the ARV of these properties would range up from $175k-200k. By putting about $50-60k on each property using the 1031 I would purchase it and rehab it with private hard money notes since it would be far below the 70% finance barrier. I figure my ALL IN fully rehabbed property of 85-100k and ARV's at 170-200k I would not have to bring anything to closing to convert to a 30yr note using the equity to pay all closing costs. My risks? mainly would be locating 2-4 properties and closing in the 180 day window right? IF I had to I could just purchase a full retail using the balance of the 1031. What do you think. Any holes we could punch in that idea?

Somewhere in between those steps I would guess the IRS would take their cut as reported by the IRA custodian?

Excellent, that solves one tax entity. Thats good to know and would help make withdrawals tax free during retirement. Plus I have heard some benefits to your heirs when a Roth is involved. The LLC properties are outside of IRA's, so if I am not tied entirely to them I could put $1M of them into a Charitable Trust with perhaps a 5% withdrawal and use the IRS rules for deduction moving assets into a Trust in the first 6 years to convert the IRA rentals to Roth IRA rentals. Might work.

Hello, Of late I have started looking at my tax situation in retirement. I have ideas in my head but I am not finding the correct answers doing google searches. My tax bracket with SS and rental income from LLC or IRA will put me in 24% tax bracket.

1) Can I move IRA rental properties directly into a Roth IRA, or do i first have to convert the IRA rentals into cash pay the capital gains move cash to the Roth?

2) Can I move my rentals from my LLC into a Roth IRA or do they also have to sold, pay the capital gains and then move the cash into the ROTH and repurchase rentals.

My original post was an attempt to see if a strategy I had would work. It was to finance the property out of the IRA to myself, currently in the IRAs. Not finance properties within the IRA. Not create notes inside the IRA.

I suspected as much. I guess the only way to get something out of an IRA is to take the tax hit at some point.

Hi All,

I was trying to look at some tax strategies and was curious if anyone else knows if this is possible. I have rentals in my IRA. Is there lending institution that would allow me to put 20-25% down to buy the property out the IRA? I surmised there wouldn't be a tax event.

The bank replaces the cash value in the IRA and a note gets created outside like a private investment?

Anyone know of this or banks that would do it?

I found out today that QB Pro 2016 has a product limitation.  You can only segregate income/expenses using FM8825 for 4 properties and there's no way to add any more.  I have had several love notes from the IRS over years due to accountant issues and I lean towards do it myself.   Does anyone else use a bookkeeping software that works for more than 4 properties and also can import to turbotax?

I have been doing my taxes for my rentals thru an LLC for almost 10 years using Quickbooks 2008. I usually just send the necessary forms to the accountant to do my taxes. I have had some issues of late with the Accountant. Rather than switch accountants, I found out this year that turbotax business can import quickbooks. Not sure if anyone here on the blog has attempted this but thought I would ask. The biggest sticking points is correctly defining the tax lines for income and expenses in quickbooks so it can import to turbotax.

Are there any do-it-yourselfers out here that have tried this?

I will consult with an accountant.

Here in Texas we are limited in investor banks. That being said, the few we do have, their investor products are asking 1-3-5yr ARMS at 7-9% or some variant with 15yr terms. They too will only finance up to 70-75%ARV. But their ARMS create a variable % landmine that you don't get with a 30yr fixed fannie freddie. Another issue due to my time constraints I am limited to REO's, wholesalers, on-line auction companies. Lately its rare I can get a deal low enough with rehab to make it a cash flowing property without leaving 15-25k in rehab costs in equity on the table after refinance. Wholesalers tend to have some rose color glasses with actual rehab costs.

I suppose if I could dedicate enough money to be able to payoff investor loans I could avoid the %rate hikes in the future.