All Forum Posts by: Petra M.

You won't be able to demo the house since it has a mortgage on it.  Your house serves as the collateral for your mortgage and your lender would be pissed if you demo it (i.e. they'd call your loan).

If you own the house outright, you can get a construction loan and pay interest only.  When the construction is complete, you'd get a mortgage that would pay off the construction loan.

One sneaky option is to do a huge "remodel" and basically leave a couple walls up while demoing the rest of the house. This has the advantage of preserving your assessed value, but it sounds like you bought recently.

Thank you @Daniel Kong. That's the weird thing. When applying for the GET/TAT account, you have to list your property address. I don't know why they don't just check the property tax and GET/TAT databases.  In any case, my realtor suggested that I just operate under residential as there aren't additional fines if I'm caught; just that I have to back pay taxes, which I would have had to do anyway.

Does anyone have any experience reclassifying a legal vacation rental from residential to resort for property tax purposes?

The unit I purchases for a vacation rental is classified as a residential property with a 0.45% tax rate versus a resort with a 1.39% tax rate.  

According to this website, reclassifying a property from residential to resort results in paying the current and past years resort tax rate! 

- Since the Fiscal Year ends on June 30, is it better to reclassify on July 1 so I'm not paying for an extra year of taxes (2019, 2020) versus waiting (2020, 2021).

- Anyone run a vacation rental, pay the GET/TAT taxes under a residential property tax classification?  What's the likelihood of getting 'caught'.

Thanks so much!

From CNN. Can deduct unlimited real estate losses off regular wages, no income restrictions, and retroactively to 2018. 

“Previously, if a married couple had depreciation deductions that exceeded their real estate business income, the couple could claim that "loss" to write off taxes on a maximum of $500,000 in income from other sources, like wages from a day job.

Under the change, our rich taxpayer couple -- and this applies only for individuals, not corporations -- can now deduct an unlimited amount of "excess losses" in real estate against income from other sources. So now real estate moguls with lucrative day jobs or bountiful capital gains from other investments can go back to living tax-free, the Kushner way, before limits were put in place as part of the 2017 tax reform bill.

It gets worse, if that's possible. The change applies to this year -- and retroactively to 2019 and 2018.”

https://www.cnn.com/2020/03/28...

Likely Crystal City VA...

WaPo article

https://www.washingtonpost.com/local/amazon-in-adv...

I didn't see any posts on it... could be interesting.

This was posted by a respected member on the reddit real estate investing sub:

https://www.reddit.com/r/realestateinvesting/comme...

https://www.mauldineconomics.com/frontlinethoughts...

One of the comments describes the "Minsky Moment", basically a collapse in asset value due to excessive loans being taken out, similar to the 2008 GFC.

"That being said, I feel like we’re going to be coming up on another Minsky Moment in the near to moderate future. Considering the fact that household debt levels are coming back to 2006-7 levels and retail is in the process of going down the drain, I think we’re going to see a reckoning in R/E and associated securities."

Interesting read.

@Aaron Hunt  Thanks!  I'm late to the party :)

https://www.engadget.com/2018/04/15/zillow-flippin...

Zillow is entering the home flipping market starting in Las Vegas and Atlanta.  What are people's thoughts?

I guess if the influx of supply doesn't scare you off... 1500 new units accessible only by a single road into or out of Squaw?