All Forum Posts by: Ryan Melander

Derek, Thanks for the feedback. You are correct about the interest rate, the bank says 4.99%.  I ran the numbers with the latest interest rate and removed the common area cleaning & snow removal cost as i live in Minot.  The cash on cash return is mid 20's.  What would be an appealing deal for you to purchase a 4-plex in Minot?

Help from members in the ND area. What do you think about this deal? It doesn't meet the 2% rule but the ROI and 50 rule seem to be okay. Also, what are your thoughts on the minot ND rental market?

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*This link comes directly from our calculators, based on information input by the member who posted.

I would have to agree with Sam R. , the apartment is your until the 28th. Be sure to replace your a/c filter and filter above the stove to help remove the smell. Maybe add an air freshener above the a/c filter days before you move out. Good luck!

@Mark Creason forgive me i don't quite follow.  

Lets say for example if the initial investment sold for 165k.  The cash received after paying all expense is 65k which goes into a 1031 exchange.  

The new investment must equal 165k or I pay taxes on the 65k?  Or is there any circumstance stance where i would pay partial tax on the 65k if i don't meet the replacement value (165k in this example) set forth by the 1031 exchange account?

@Scott F. thanks for your input.  I figured thats the way to go, small percentage to pay in order to protect an investment.  Cutting out title insurance for the 6 months between the cash purchase and refinance did cross my mind but thanks for setting me straight BP community;) 

@Mark Creason good points. It sounds like what you're saying from point 1is that if i don't meet the replacement value of the original investment I will have to pay taxes on the difference?  I'm under the impression if the replacement value of the 1031 exchange isn't meet I have to pay taxes on all money acquired in the sale of the original investment? 

@Michaela G. Thanks and very true.  The plan is to refinance in 6 months.  So I guess the question is what are the chances something could/would happen in that short time?  I've always thought of title problems happening down the road, like in years not months.  In fact i've never heard of anyone having problems... and when i refinance ill get title insurance which should cover the previous 6 months correct?

@Mark Creason, good point but I've never heard of a bank doing a loan that small.  What type of loan would that be?

@Dave Foster, good point.  I don't want to get hit with taxes over inflating a purchase for a 1031 exchange. Its it possible to inflate it without being taxed for refinance purposes as long as its not over the appraised value?