All Forum Posts by: Richard H.

Hi I have searched for a bit and can't find an answer to my specific situation.

I am selling a rental property and would like to 1031 exchange the proceeds into a new rental property. If I do this and later decide to move into the new rental property (making it my primary) will the deferred taxes come due?

I have come across articles that seem to imply that if the replacement property is in service as a rental for at least 2 years I won't be in violation of the 1031 exchange rules and avoid paying the taxes. Not sure if I am interpreting this correctly.

Thanks for the help!

Thanks everyone for the responses and advice!

I am an investor in FL with a FL LLC. I am looking into opportunities for flipping houses in IL. Maybe someone has a similar experience or can recommend an IL attorney I can talk to and get an answer to the following:

Do I need to qualify my Florida LLC as a Foreign Business in IL to buy-rehab-sell property? I have come across a list of exempt activities that do not constitute transacting business in the state and "Owning real estate" was on that list. I am under the assumption that since I am making a profit (hopefully) on the buying and selling of real estate, that this exemption does not apply. Thanks.

Hi,

I've decided to break out of the turn-key rental market and start looking at properties that may require a bit more rehab work than I am usually willing to undertake. I'm looking for a General Contractor who is willing to walk properties (I realize there may be a fee), provide a decent estimate of costs, and ultimately perform/coordinate most of the rehab work. Does anyone have any recommendations of GCs in the Tampa Bay area? Or a better way to search other than blindly typing different key terms into Google? Thanks!

Thanks for all the help everyone, I'll have to do some reading on IRR.

@Glenn McCrorey, so far I have financed both of my rentals through conventional loans with the big banks. I'm starting to look for alternatives. I'll keep you posted.

Mike and Glenn,

Thanks for the responses. Big help.

Hi,

I'm in the process of a cash-out refi on one of my rental units that I have owned for about 3 years. One of the financial statistics I really pay attention to is my cash-on-cash return each year. I was wondering what approach to take after my refi is complete? I am essentially getting back twice the cash I originally put in so in essence I will have a negative or zero "initial investment" amount and will have "infinite" returns. This won't help at all when trying to evaluate the performance of the property.

Should I use the original investment amount to continue tracking CoC?

Should the cash I receive from the refi be factored into my cash for this year or spread it across the previous 4 years? Or not be treated as cash income at all? I will be paying a higher interest payment each month so my cash flow will suffer, however, I'm also receiving a bunch of cash at once.

Let me know if I'm over analyzing this and there is a simple solution. Thanks in advance.