All Forum Posts by: Pixel Rogue

bump

The objective would be to do sell 2 (possibly 3) investment properties and acquire duplex via 1031.
The purpose of converting to personal residence would be as part of an investment property exit strategy; capital gains. 

If we were acquiring a single home instead of a duplex, we rent the home out for a few years, then move into the home and convert to our primary residence...which seems like a solid strategy to minimize capital gain responsibilities. 

Would purchasing a duplex materially change that opportunity? Are we better off purchasing a single home? (presume quality of life is the same either way in duplex or single home.)

Yes, purchasing a home and renting it out for a few years to support the 1031 and the convert I understand.

Where the question comes in is the fact that it would be a duplex.
Would we be able to move into one unit, keep the other rented and do the conversion (full conversion the same as if it were a single family home?) Would we need to move into the building (have no tenant) for a period of say two years) for the conversion and then rent out the second unit?

For example I lived in a quad that I owned for many years and while living at the property I was only ever able to utilize 3 of the 4 units for business (taxes, expenses etc.) because I was living in one unit. Would moving into one of the duplex units, renting the other, create a situation where the conversion opportunity would only be 50% instead of 100% for example? 

UPDATE:

We now have an interest in a long-term retirement duplex...purchase now through 1031's, rent it out for a few years and then move to new property. Duplex has the option to covert to single home.

If we go this route, we are thinking we would rent the duplex (two tenants) for the first few years...clean 1031's. When we are ready we would move to the address. In theory, we could use the entire property as our primary residence in the beginning, right? Convert like it was a rancher...not rent out the other unit...we would essentially occupy both spaces. Then, say give it a year or two and we occupy one unit, rent the other. 

If this sounds cryptic:
• Purchase property through 1031's
• Rent each unit out for a few years.
• Move to property and not rent either unit...we would occupy both units in order to convert 
.  rental to our primary residence.
• Give it a few years and then start renting out one of the units as we live in the other. 

Goal:
Full 1031 conversion to primary residence (like it was a normal single family home) even though the acquired property would be a duplex. Is this possible? Would want to avoid 'partial' conversions, partial benefits of the conversion. 


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BUMP

I have a few properties each with their LLC.
LLC's are in the state of PA, and currently using a registered agent and looking to make a change or two. 
Have business with a service that recently opened a branch in DE, which is what started the idea.

Are there any benefits, risks to moving the LLCs to Delaware?
Also, can LLC's 'be moved' ~ so for example a few properties have loans under the LLC name. 
Can switching be as simple as signing up w/a registered agent in DE and then transfer from PA?

Not much profit in the business btw, not sure what business requirements or responsibilities would change by moving to DE.

We did find a fixer upper of interest...money pit in ways.

1031 exchange is apparently much more complicated if your are looking to roll in construction costs for updates on target property....appears discouraged AND would take more time to plan and execute.

RECAP
One of the plans is to take an investment property or two and do a 1031 exchange into a singe family home that we would rent out for a while and then eventually move into as primary residence. 

The fixer-upper would not be any condition to rent...it would take some serious dollars just to get it renting condition. 
We would be comfortable moving in and fixing up as we went along, however that conflicts w/the requirements of the 1031.

QUESTION
Could we still make the purchase using the 1031 exchange (sell an investment or two and get the home) and let the home sit for while. This means it would not really be in rentable condition. Then in a few years move in and start fixing it up?
Image we could purchase, take our time in fixing it up and then rent it out for a few years, and then move into it (albeit a pain, and like purchasing a problem.

Have sold and purchased placing funds in escrow for required repairs.
Fast forward a few years and I find myself heading up a small HOA.

HOA requires seller to make repairs, and there is a question if the escrow is between Seller and Buyer, Seller and HOA?

Seller & HOA
+ HOA can inspect and ensure work is properly being done
? Does HOA have to arrange all the work, schedules etc to be done, or is this the seller responsibility once escrowed is agreed?
? What responsibilities belong to HOA for said repairs?
? Would contracts for required work be signed by HOA or sellers (maybe both)?

Seller & Buyer
• More traditional approach
+ Less involvement required from HOA
+ Buyer and Seller negotiate and maintain schedules. 

Thank you! Poor for more this year....😅

Hello everyone,

Due the number of assumptions made around the more known 401k rules and limits, respectfully requesting responses to be from those who are intimately familiar with (rather than google'd it and have an opinion) how Super/Mega Roths work with standard familiar employer based Roth 401k plans in the same year (but not concurrent.)

SITUATION
I have been an independent contractor and fortunate in being able to contribute to retirement via Mega Roth conversion. That contribution has been maxed out for 2021. I recently accepted a full-time position and am no longer an independent contractor.

QUESTION
Since I was independent FIRST, and the contribution was made as after-tax funds to a qualified traditional ira (then converted,) am I able to contribute in 2021 to my employer sponsored plan?
Note ~ I understand one can not contribute to both 'concurrently' - one can not contribute to both an employer sponsored plan and independent plan at the same time. 

@Dave Foster  Understand. Sellers of a primary home likely have different expectations on the length of time a multi-family can take to sell. Personally we would prefer owners to rent back as we would be planning to rent asap anyway for the first few years. That said the one party who expressed interest is not a home we would consider at this time.