All Forum Posts by: Account Closed

Thanks for your reply. 

Question on the comment you made.  Does the next rental purchase have to be equal to / greater than the Net Sale (which I expect to be around 130k) or the balance on the mortgage debt (150k).

Thanks again.

Anyone ever done a 1031 exchange on an underwater property?  I'm currently researching it and would like any advice / experiences of the members here.

A little background ; I have a condo - bought as my primary residence at 190k, unfortunately when I converted it to a rental the value was down around 70k (that is now my basis).  It is now at a point where I can get out from the mortgage.... I will actually have to bring some cash to closing, but I have a "gain" for tax purposes.  

Thanks

Hi all- My tenant has just moved out and I would love to sell one of my rental condos.  

I bought in 2007 as my primary residence for $190k

I converted to a rental in 2013 with an adjusted basis of $70k

I can now sell for $140k and get out of the mortgage, but I understand I will have a gain ($140-70k plus depreciation recapture).  

I would love to do an LKE, however since the mortgage is appx $145k I actually won't get any money out at closing.  

Any ideas or options for me besides paying a huge tax bill that I'm missing? 

Thanks

Thanks all.  The 3rd anniversary has past. I moved out early in 2013.  My initial thought was also that my basis is 70k - meaning I would have a "gain".  However, after reading IRS pub 551 I was confused and slightly hopeful.  I don't think an LKE is really an option for me as I will just barley be getting out of the mortgage at a sale price of 140k.  

In 2007 I bought a condo for $190k.  In 2013 I moved and converted it to a rental as I was too far underwater to sell.  The market value at that time was 70k (basis for depreciation).  I've taken about $8,000 in depreciation.  I am now looking to sell it for about $140k.  Do I have a gain or loss?  

Reading the IRS guidance, the basis for a gain would be original cost less depreciation taken (190-8= $182k, so no gain).  The basis for a loss would be the value at conversion less depreciation (70-8= $62k, so no loss).  

Thank Chris.  This property is a condo.  My Fannie lender can't help me.  Freddie will finance its own HomeSteps condos.  I just need to figure out their max allowed financed properties.

I would just like to purchase the property.  I have used HomeSteps financing before- pretty quick and easy, only 15% down.  I had hoped to use it again.  I thought someone here might be familiar with the guidelines as I seem to be getting conflicting information.  Thanks

Is anyone familiar with Freddie Mac lending guidelines and/or HomeSteps Financing?

I’m looking to finance my 5th property (I have 3 rentals and my primary). It is a Freddie Mac HomeSteps home. I am getting very mixed responses from lenders. I contacted loan officer at BB&T (HomeSteps lender)- unfortunately she said she could not help me as Freddie cuts you off at 4. I then contacted a different lender- she said Freddie recently (Oct 2015) changed the guidelines to allow 6 mortgaged properties, but she is not a HomeSteps approved lender.