All Forum Posts by: Richard Lima

Thank you all for the help!! Glad it can be done, I for sure need to hire an intermediary and get this done the right way.. Much appreciated!!

I'll be selling my first investment property soon and will be buying another property and do a 1099 exchange, my question is if I'm going to have about $180k after the sale then I assume I have to buy a property at $180k or higher to avoid paying any capital gains tax..can I buy the property with hard money or does it have to be cash? And if it can be bought with hard money, can the $180k include rehab costs?? Example: sales price $150k + $30k rehab = $180k total loan and use a 1099 exchange? Or is that double dipping?? 

I'm in Dallas, TX and have been seeing houses being sold as high as 82% for a flip property and not sure how relevant the 70% rule is in this market? Many deals are getting bid up to about that threshold and according to my numbers after everything there is about $20-25k to be made (if purchased cash) on a house being sold for about $130k-150k 

If using hard money, would you bid this high or is the ice too thin? (given about $4-5k in hm fees) 

Hi Matt, I work with many investors locally and many are buying in towns like Grand Prairie, Cedar Hill, Duncanville, and Desoto for rentals and most are getting a 10% return.. some are turn key and already providing 8-9% coc return and almost all are under $150k so it gives an option to purchase more properties.