All Forum Posts by: Ryan Yu

Hi, here's my question. If I buy a 4 unit multifamily property using a 1031 exchange for $2 mil then use my own cash to remodel it, then have it appraised for $2.5 mil. Can I then refinance the property and take some money out  to use it as a down payment for another multifamily property without paying any capital gains tax on the money I take out from the refinancing? Or do I have to pay capital gains taxes on any money I take out from refinancing?

I have a question regarding 1031 property exchange. If I sell a single family house for $1 million which has a mortgage of $100k, can I do the following: I buy a single family house property using 1031 exchange for $1 million and get a mortgage of $700k . So from the sale of the relinquished property I have let's say a total of $850k after paying the mortgage and broker commissions etc. Then I buy a 1031 replacement property for $1 million but get a mortgage of $700k. So of the $850k I have from selling the house I use $300k of it and the $700k mortgage loan toward the purchase of the $1 million house. Now I have $550k cash left over to either buy another properrty or invest it another way. Do I then need to pay capital gains tax on the $550k amount or not? Thanks in advance.

I live in New York City and I am selling an investment property in California, a single family house, and I am planning on using 1031 to buy investment property in New York City. My wife read online that if you use 1031 to purchase an investment property in NYC that as far as houses are concerned, you can only purchase a multi family house and not a single family house or houses. I tried to look this up online but cannot find any information to confirm or refute this claim. Does anyone know anything about this? Thanks in advance.

Thanks for your reply. I read somewhere that only 5% of real estate agents know that previous marijuana grow in a house has to be disclosed. In my situation, a professional clean up crew repaired everything and also didn't find any mold inside of walls before starting the cleanup and new flooring and dry walls were installed and it was over ten years ago. I wonder if the buyer does find out later what if any damages they may seek and or if they would get any damages awarded to them.

Hi, I own a house in California currently valued at about $2M. About 10 years ago the tenant was found to be growing many  marijuana plants inside the house which I didn't know about. Luckily, my home insurance policy covered the cleanup and rebuild of the affected parts of the  interior of the house. There was no mold found inside the walls. Electrical wiring has been redone to normal. Since then, I have rented the house to other tenants and there are no complaints from them. Now I am thinking about selling the house. Do I have to disclose to buyers that this was a marijuana grow house in the past even though everything has been cleaned up and there is no mold? From what I've read online, it seems I have to disclose this but what would happen if I don't disclose this to buyers? If the buyer finds out about it after they bought the house can they take legal action against me even though everything has been cleaned up and there is no mold or chemicals? 

Hi, if my wife becomes a real estate agent in New York (we live in NY) and we buy properties in other states such as Florida or Georgia, can we use segregated deductions on houses we buy outside of New York in order to pay less income taxes from my earnings? Do the tax breaks apply only to federal income tax or state income tax also? Thanks in advance.