All Forum Posts by: Raky Patel

@Fred Heller mine is 4 miles west of the galleria mall before westchase (9200 westheimer). Technically not in galleria but near it. It is a 1 bedroom, 1.5 bath - 858 sq. ft. 

Thanks for the quick replies guys, y'all are awesome! Reason it was urgent as it was listed for rent and there are already interested parties (nobody submitted an application yet). It will be listed for sale tomorrow instead. 

 @Rob Buffington it was a short term 3 month lease. The tenant already gave me notice that they are leaving at the end of this month so no issue there. 

@Jesse T. the lease is ending at the end of this month. I moved out in October of 2012. My property manager is also a broker and per the agreement he gets first crack at listing it which I am fine with. Average days on the market for both sales that occurred last month in my community for the same units are $158k in 3 days and $161k in 5 days. It is located near the Galleria area in Houston so quite a bit of demand. 

Thanks all! 

@Josh BakhshiI am selling the house because I am breaking even every month. Sure there is principle paydown of $2500 a year but I think I can use the proceeds to fund 2 more properties that cashflow and don't have an HOA. This house wouldn't have been my top choice as a rental, circumstances just made it one.

Hey all, I need advice regarding the sale of my rental. It is a former residence that is a cookie cutter town house. I am basically breaking even on. I owe $107k on it and market value is $157-160k. 

1. Are transaction costs typically 8% of the sale? That is what I am being told (factoring in commissions and misc. fees). 

2. According to tax law I don't think I need to pay any capital gains as I lived there from 2010-2012. It became a rental in 2013. From my understanding I need to have lived there for 2 of the last 5 years. Is this correct?

3. I don't want to hassle with a 1031 as I am still trying to decide where I want to buy the next properties. Currently considering out of state as an option. That said, I will have to pay depreciation recapture. As I only took depreciation for 2 years of around $4k each year, am I only taxed at 25% of that so a total of only $2k?

4. If my math serves me right, my net in pocket would be: $157k-$12,560 (transaction costs) - $2k (depreciation recapture) - $107k = $35,440. Is this right or am I missing anything?

Thanks,
Raky

@Ed Neuhaus , are you a Challenge member? I am thinking about joining this level and then upgrading to the PIG level after I get a few more properties. 

I just joined Lifestyles Unlimited last week. They had a promotion for $250 for a year. I went to the 2 day seminar split between SF and MF on different days. To me it is worth it. I knew most of what they taught via self education/bigger pockets. That said, being in Texas, it was worth the networking and I did learn a few things that I did not know. Furthermore, you would likely get your $ back from the vendor discounts they are affiliated with due to leveraging the groups buying power. In my opinion if someone is starting with very little knowledge, the 2 day class will teach them most of what they need to know to take action. As far as the upgraded memberships there - Challenge and PIG programs, it could be worth it depending on your capital and your specific needs. Everyone has a different situation. 

Hi @Rosalynn Rice , I am not currently a member of Lifestyles Unlimited but have attended several of their events. Seems like a great group of people and I am sure you will get some value out of the base level of membership. I do plan to join their base level of membership with the idea of becoming a part of the P.I.G. group possibly next year. I think I want to get a few more single family rentals first before moving into that realm.