All Forum Posts by: Ryan Fox

I'm asking this question because I'm getting different answers from different CPAs as to how much I would save.  I'd like to sell one of my rentals and put the proceeds into stocks instead, but if the tax hit is too high, I'd do a 1031 exchange.  

The gain on the sale of the rental property would be about $58k after expenses.  For this year, I currently have about $131k in short-term capital losses outside of real estate.  I have no other short-term gains to offset those losses. 

Since I bought the property in 2019, I've written off about $13k in depreciation.  How much would I save doing the 1031?  TIA!

@Jonathan Cisneros- Sent you a DM.

@Jonathan Cisneros- What part of LA?  I may know some people.

@Matthew Slaughter- Right on.  I'm just trying to make sure you'd be likely to win the eviction if you had to do that.  In hindsight, @Kevin Sobilo's suggestion is a much more diplomatic way to do it that could resolve the issue without going to court.  

*Same disclaimer as above.

@Matthew Slaughter- Yes, that sounds like a good plan.  Does your lease say anything about ensuring the quiet enjoyment of the other tenants in the building?  If so, I would specifically cite that paragraph.  In most leases, the "quiet enjoyment" paragraph is one that explains the landlord's obligation to provide quiet enjoyment.  It's not phrased as an obligation of tenants to provide quiet enjoyment to one another. 

Even if your lease isn't phrased this way, it would be a good idea to send the police report to the tenant and explain your position that it's a violation of the lease.

*This does not create an attorney-client relationship.  This is not intended as legal advice and is for informational purposes only.  

@Jesse Rodriguez- Do you own the property in an LLC or other business entity? Sometimes you can file for bankruptcy for the entity and not have to file a personal bankruptcy. Cut the losses.

@Victor Hernandez- Not unless the pet is causing significant damage.  Another way to structure it is to charge pet rent instead of a pet deposit in the beginning.  It would be a $20 to $30 charge added on to each month instead of a big deposit at the start.

@Victor Hernandez- It's always a tough decision.  Don't agonize over it.  If it's their first renewal, keep rents where they are and raise the rent next year.  There's not enough rent differential to risk having a vacancy.  

@Earl Morris - You're actually on the right path by doing estate planning before you buy more real estate. I see too many investors who go straight to LLC creation and end up naming themselves or themselves and their spouse as members of the LLC without proper estate planning considerations. This can lead to a probate lawsuit in the future.

*This does not create an attorney-client relationship.  This is meant for informational purposes only.  Please continue to consult your attorney in your state.  

@Sumit Kaul- Can't really speak to that market in particular but ways to estimate the potential rent include rentometer.com, zillow.com (rent zestimate), and look on craigslist.org.