All Forum Posts by: Ricky Brown

Hey Tim, welcome to BP. I'm fairly new to this as well. You first have to decide exactly what you want to do as well have an exit strategy. I started off by purchasing a second property after my primary. In order to avoid the 20% down payment for investment properties, I made the new property my primary and used a 203k loan to renovated it (which created equity) and after a year, rented it out to create some passive income. Remember, a primary residence and investment property are treated differently across the board. It's all a numbers game and you have to maintain a reserve of funds. In the meantime, learn as much as you can about building in general. It will help out and perhaps save money in the long term. Good luck!

Thanks @Dave Foster. You have been a lot of help along with input of others. In my case, the balance on the relinquished property is 85k selling for 175k. Does that means that I will have to acquire the new property of 175k-10k(fees)=165k? If I'm understanding you correctly, this is simply an upgrade. My goal was to simply purchase a property equal to the profit and diminish debt completely. That stipulation is modern day financial slavery in my opinion.

I purchased a home 2011. It served as primary residence for the first year and has been rented out ever since. I've been documenting it as income for tax purposes but is it technically a rental property since the loan agreement says its a primary residence? I need to know before pursuing a 1031 exchange. I apologize for my noobiness.

I'm sorry @Christian Bors but I don't quite understand. Are you saying that I'm excluded from capital gains tax because I've held the property for more than 2 years?

I just wanted to get a general consensus on what my next move should be. I have a rental property (still financed as a primary residential) that is on the market for sale. From research, I see that 1031 is a way to defer capital gains tax. I understand that I must do this before the home is sold. Is the 45 day timeline accurate and does the proceeding property have to be in my name due to the fact I may not qualify for a new mortgage?  (going to school and currently not working). In other words, will my gains be deferred by being a investor through a 1031 exchange.

This post started getting funny at the end. But thank you all for the information. I'm trying to figure out my next move and a 1031 seems like a suitable solution.

Legal Zoom can be a quick fix. I've used them years ago and received all my documents under 30 days I believe.

Hello everyone,

I'm new to the investment side of things, however I hope to learn more and look forward to working with some of you.

Rick