All Forum Posts by: Ryan O.

Thank you, David.  I appreciate the reply and the advice.  This condo has been an investment property of mine for nearly 12 years.

Originally posted by Paul Sundin:  

I agree that rates for QIs I have dealt with typically start around $900 and then they charge a couple hundred dollars extra for each property in the exchange. So make sure to shop around.

1031s are great vehicles, but there is a cost and headache factor. As a result, if a client has a small gain I sometimes recommend just paying the tax. It just depends on the situation.

Paul,  if you don't mind me asking what would be the range that you would determine to just pay the tax?  For example, lets say I bought a condo for $230K in 2003 and sell it for $450K (and I owe $210K on the mortgage) in 2015. Would this range be a range you'd advise to potentially look into a 1031 or pay the cap gains? 

Thank you.

Thanks Bill.  I appreciate your insight.  I simply want to make a productive decision that will maximize my position(s) during the exchange.  I actually emailed your company a short time ago requesting a cost estimate on services. Maybe we can discuss further. 

Ryan

Hello,

I am currently looking to conduct a 1031 Exchange with an inv prop I own in Hawaii and I have a couple questions for the more experienced investors who have possibly been in this situation before.  Background:  I own two investment properties, one in Hawaii (owe approx $210K on mortgage) and one in Bronx, NY (owe approx $38K on mortgage). 

My proposed strategy:  If I utilize a 1031, I will have approx $215K for the exchange on the gaining property after paying off the mortgage.  My initial strategy for this was to find an income producing investment property for under $215K and then use the remaining (after having to painfully pay the cap gains) to payoff my Bronx property and/OR save for a down payment on an actual house for my growing family.  

Questions:  

1 - What would you do with that situation?

2 - Would you consider a VRBO for the gaining inv prop since you could be free and clear of a mortgage?

3 - Does anyone know if you can use the 1031 to pay off another inv prop (i.e. the Bronx Prop) ....since it's an inv prop, without having to pay cap gains (probably not but have to ask)?

Sorry for the drawn out post but I am really trying to maximize this opportunity in my favor.  I look forward to your comments and answers.  Thank you in advance!

Ryan

Thanks for taking the time to welcome me everyone. I'm sure I'll have more situations, issues, questions etc.. etc.. in the future, that you will be more than welcome to help me out with. Best of luck to all of you as well!

Didn't mean any harm Jon. I am obviously new to this. I appreciate the welcome.

Hi Everyone,

I just wanted to introduce myself and potentially get some quick advice. My name is Ryan and I currently live in Alexandria, VA. I haven't been on BP for too long but I think this site is an amazing source of information. Currently I have three properties (two are rental properties -condo in Hawaii and coop in Bronx - third is my condo in Alexandria, VA - that I am renovating and living in). I am attempting to refinance my Hawaii condo, which is a leasehold property, and buy the fee of the lease (98K). To make a long, drawn-out story short, my goal is to get my Hawaii property squared away by turning it into a fee simple property (this is where I need advice -- on financing a lease fee which I find to be a very obscure real estate expense) and then begin my investment focus on flipping in the VA, DC, MD area. I am debating on selling my Bronx co-op and/or VA condo in order to use the money towards payment of the fee, as well as freeing up cash for investing. I am not sure what my best options might be. I appreciate any and all advice. In addition, I look forward to building relationships and networking on here as much as possible. If anyone in the VA, DC, MD area want to connect, please feel free. Thanks.

Thanks P NW. I actually got in touch with a lender and they are looking over the lease agreement. I found them off of lender depot. Now, I just have to find a way to cover about half of the lease fee so I can turn it into a fee simple property (approx $53K). Any recommendations on how to finance the fee?

This clears up what some on here might consider an ignorant question. I appreciate you taking the time to answer my post. I've been holding strong in the buy/hold strategy since 2003 now but after a refinance and a future sale (hopefully) I am looking to get into a combination of flipping and buy/hold. Thanks again! Great website and knowledge here!

Thanks Marc. I appreciate the reply. Is it then safe to say that a wholesaler is an investor? I guess I am trying to figure out who I would like to work with as an investor looking to fix and flip. Thanks again.