All Forum Posts by: Ronald Roetsel

All, 

Recently, I marked (actually paid someone licensed to do that) the corners of my new lot. After analyzing GIS data, I discovered that my neighbor’s house, garage, and shop are built with minimal permissible setbacks (50 feet to an inch) from the boundary line. Some other structures, like a patio and propane tank, are even closer. Considering the obstacles above, his driveway encroaches onto my property by 5-15 feet over a distance of 240 feet. There is no easement in place, and the driveway could be relocated to the other side of the building or reshaped to avoid crossing the "border". Furthermore, some installations, such as his antennas on a pole, are on my land.

I am a reasonable person and don’t have any issues with this. The new owner bought the house after I purchased my land, and he might not be aware of these encroachments.

Is there any risk for me, such as the possibility of acquisitive prescription of a part of my real estate after years, especially if (theoretically) the neighbor incurs considerable expenses for e.g. asphalting his driveway? 

Thanks!

R.

All,

Based on your experience, would you say, that the real estate tax for a vacant land should be correlated with its usable part? 

Here's what I mean. One of my properties, specifically 10 acre, zoned single family, is located in the mountains. In fact, only 0.75 acre of it can be used - the rest contains of steep hills, cliffs, heavy rocks - no way that can be used for anything (I was fully aware of that). In the same area, there is 50+ lots, all with similar acreage, however, most of them are flat, some of them with with minor elevations. Unfortunately, the vast of them have houses and other buildings or improvements on them so I can't compare the public records. 

Question...  Is it fair to assume that hypothetical three neighboring vacant lots (1st totally flat = fully usable, 2nd - 50%-50%, 3rd = only 10% can be developed), with a similar acreage, should fall under different tax rates? Or that is irrelevant? 

Thanks!

Ronald 

Thank you both!

A few more questions (I realize this may be OT for this group but I would ask anyway as this may be obvious for you). 

1. Wouldn't I have any problems with IRS if LLC doesn't generate any revenue for years?

2. How about an opposite case? I have financial problems in my personal life (e.g. I die, leaving millions in medical bills declined by my insurance company). As I am the breadwinner, and let's say the LLC was registered on me, OR my wife, OR anonymous, she can lose the assets "owned" by the LLC?

3. Can a single LLC provide multiple, unrelated services? For example (fictitious) - can my future LLC (a) acquire properties (as above), (b) provide consulting services, and (c) offering commercial cleaning?

Thanks again!

Ronald

Hi! I am thinking about buying a few parcels (in other state) and... do NOTHING with them for next ~10 years (so no income, minimal annual expenses). Then, depending on the situation, I would either sell, build houses and sell them, and/or build a house for myself on one of them.

I was wondering if this would be a good case for LCC? I would like to separate my day-to-day life (W2 employee) and real estate investments. 

Any thoughts? 

Thank you,
Ronald

Thank you all!

@Dave Foster how 1031 would work in the following scenario? Let's say, I sold a rental property for $250K. I bought it 10 years ago for $240K. Theoretically my gain was $10K plus $50K depreciation I claimed over those years. (exact numbers are irrelevant; I wanted to show a disproportion)

Would re-investing (1031 exchange) $100K of $250K make any sense in this case? 

What if... what if  spent those $100K on some rural land. Obviously I will not able able to rent it for - let's say - next 5+ years. Would there be any tax implications (penalties, interests) if after those 5+ years (of unsuccessful rental) I would build there my vacation home or a primary residence? 

Thanks again!,

R. 

Is it possible to do a "partial" 1031 exchange? I need to sell my NY rental property (co-op) but unfortunately I cannot reinvest 100% of its value. I was wondering if buying e.g. some land (value approx 25-30% of sold property) would allow me to lower / defer taxes?

Also, would you be able to recommend a NY based CPA / tax expert familiar with RE who can review with me available options and deductions? 

Thank you,

R.

I hope some of you who have experience dealing with co-ops and their management companies (especially in NYC area) can give me a hint how deal with the management company who for years deliberately makes my life difficult and put unnecessary burden on me and my investment. To give you some examples, they freely change balances on my accounts and ignore to correct them - even with the support of the BoD. I am closing January with $0 balance, to see on the February’s statement that I have not paid them in $2K, and now I owe them $2K + penalty + fees for February. After calling them / sending letters (certified), paying fees for February, on the following statement I am finding that I $1200(?) is overdue + fees for the current month. This game is happening for months.

They demand excessive documentation (on my dime) for damages caused by their negligence, and even we settle (what takes months) they lie confirming completion the work while the work was never done. 

I am not even sure if I get to the court as I am living out of state and I doubt if I can sue them for their stubbornness in doing stupid things. I am spending a lot of personal time collecting paperwork, sending letters, discussing cases with an attorney.

The BoD does not want to change the management company and either doesn't want to or doesn't have a leverage to change their behavior.

Any thoughts other than selling the apartments? 

Thanks!

R.

 I could not agree with you more....

When we bought that apartment (and renovated it, furnished, etc), we were planning to stay in it for a couple of years. This should explain the quality of appliances we choose, carpets, and other decor. After barely a year, we had to change our plans and move out to a a different state. At that point of time it made no sense to sell / replace everything with cheap equivalents.

The tenants had great records and stayed in the apartment for good 3+ years. It is hard to believe but they turned the apartment into a pig house where almost everything requires replacement (e.g. carpets or tiles).

I take this as an expensive lesson.

Anyway, another question for those who are more experienced... How can I estimate a cost of repairs (skilled labor) for repairs I did? It took me 35-40 hours to bring the apartment back to a habitable condition. This includes in depth cleaning, plumbing and electrical work, retiling, patching walls, garbage removal etc. I am not counting here any wear-and-tear kind of work which should be done prior re-leasing the apartment, just addressing damages. For example, are there any publicly available average labor rates? e.g. re-tiling 1sq of wall is $2.50 on top of materials?

For those who may ask why I have not hired contractors - I had no luxury of time to get quotes, oversee them or pay somebody to oversee them on my behalf. 

Thank you!

Thanks Cara. The problem is that I could not find even archive prices of those parts, what in my opinion is irrelevant. Let's say, all missing accessories in 2015 would cost $150. How does it address my problem if they're no longer available?

Obviously, I can spent hours looking for spare parts at craigslist, ebay, or a local flea market, but does it really address the case? I will keep investing my time and cost me extra money (I will still need to buy another fridge AND pay for a storage of an old one). I still wonder how to quote this...