All Forum Posts by: Sagar Mata

@Wayne Brooks and @Dave Foster you both are geniuses! 

Thank you for the answers. Much appreciated. 

Newbie question and completely hypothetical, just trying to wrap my head around how all this works.

Say I have a property "A" I bought for $1,000,000 and it appreciated to $2,000,000 after 5 years. Assume used as an investment rental property.

If I wanted to liquidate this asset and did a 1031 for a property "B" costing $2,100,000 and then a year later sell that property "B" for $2,150,000 would I then pay taxes on the $50,000 only? Or (assume the depreciation was about $180,000 for the 5 years of property "A") would it be the $50,000 from property "B" + 180,000 depreciation from property "A" so $230,000?

Thank you in advance for your help.

Thank you again @Bill Exeter and @Dave Foster. This is extremely helpful.

@Dave Foster that's exactly what I wanted to know! Many thanks for your help.

@Bill Exeter question for you if you don't mind: Does the 24 month rule start counting back from the closing date? 

I just bought a new primary residence (hasn't closed yet) and deciding wether to rent the existing PR or sell. If I close on the new one and rent the old one for even a month, do I negate the 250k/500k tax credit or is there a bit of a grace period?

Hello there-

I'm looking for some perspective from the forum:

I currently own a SFH in Temescal Oakland and have purchased another SFH also in the Bay Area that will become my primary residence.

My original plan was to rent the Oakland house, but now I'm wondering if it would be a better deal to sell and buy one (or two) condo(s) in San Francisco. My plan is to hold for long term appreciation, but also want some positive cash-flow day one and I think I can easily do that in either Oakland or SF.

Here are a few more details and things I'm considering:

 Oakland:

The house is old (1920s) but in good condition. 

I would not be able to afford a property management company at this time. I'm ok to manage day to day tenant requests but as time goes on, I'm not sure I want to be managing a new roof installation, furnace, etc as those become necessary.

SF:

I understand HOAs can eat a lot into my potential profit, but from what I've seen, the rents are such that they would cover all my costs (small mortgage, HOA and management fees). Cash flow would be bit less than Oakland but I would not have to deal with managing anything (plan would be to buy in a building where management is included in the fees).

Looking for opinions/thoughts on what would be a best deal.

As always, thank you in advance for your time and advice.

Thank you all again for the tips. I've called two local companies. One never got back to me, the other met with me and proceeded to disappear. Maybe it was something I said...

All jokes aside, looks like folks have more work than they can handle right now and I just have to deal.

@Sam Shueh thank you for the tip. I'm calling my realtor right now to ask.

Thank you all for the advice. All excellent.

I'm still trying to decide what to do but agree that the neighbor situation shouldn't really be considered too much as it's a small dispute.

And great point on the interest rate. I am locked in much lower than what I'm seeing now so worried about losing a good deal of equity cashing out and getting another 2 loans (for primary res + investment).

Will post again as I make a decision and will include more details as it may help others going through similar situations. 

Many thanks again to all of you.

Wanting to get out of my own head and get some other perspectives on my strategy.

I currently own a home in the Temescal district in Oakland that has appreciated significantly over the last few years. I want to start investing and here are two options I'm looking into and would like your opinions on what to do.

Option 1:

Keep the Oakland house and rent it. I've done some research and talked to a property management company and I'm confident I can be cash positive right away. Nothing huge, but still positive.

I would then purchase another home but would need to downsize quite a bit, which I am not super worried about.

Option 2:

Sell the Oakland house

Buy another primary residence (reaping the tax benefits, naturally) spending about the same as in Option 1

Buy a different investment property

We have a slightly bad situation with the neighbor and although I don't think they would turn out to be a problem with renters, there's a part of me that doesn't want to keep dealing with the neighbors if I don't have to.

Thoughts? Thank you in advance.

Thank you everyone for your input. I'm going to call a few local places and see what I hear back.