All Forum Posts by: SHAW ALI

I am considering buying an apartment at the Acropolis, Queens, NY, a 600+ apartment complex in Astoria. The complex has gone thru lot of mismanagement and turmoil in recent years (2018), it is a co-op, and yet to be assured that changes have been made to correct the situation. Would like to hear from the learned investors on the forum if anyone has experience with this complex or general advice on the pitfalls of co-op and other NY variations (condop) on ownership. Would appreciate receiving replies soon. 

Ned.. thanks for the info. Is there an email I can send you. Or should I post here. Maybe here so that others can pitch in. I am in a dilemma. How do I do that with all the details maybe 2 pages +

I am in a similar boat as the owner of the fire damaged property. Would like to hear how it all ended up, particularly from the owner side. Thanks

I intend to sell the property as I am out state. I intend to sell my portfolio of rental properties all SFR

The one restoration company estimated the damage at 90K..I am checking on others..

Looking for options. (1) Not put good money after bad. Shall I sell the house, and take the loss on my tax return, (2) restore and sell but with a declining housing market does it make sense, (3) Zillow estimate predamage is $170K, there is a pre-damage Zillow cash offer on their website, now?

@Dave Foster ..Many thanks for clearing that up

Wanted to know if a 1031 exchange can be done where the selling LLC buys shares in a "homemade REIT" (basically some mechanism for selling shares in an LLC) in another LLC which also holds properties, both LLCs owned by same group of investors. This way the selling LLC can be freed from the timelines to find properties and close deals, using the proceeds that are now parked in the 2nd LLC to opportunistically invest properties without timeline constraints.

Please contact  me if I have not been able to communicate my "newbie"  idea across

Hello Rob,

I should have been more specific. It is not so much the capgains rate as much as what is the capital gains to be reported. Although, the sale was for $550,000, only $110,000 was received the first year, the rest is amortized over a 30 year period, and is received in payments that includes interest and principal. So, Year 1, is the $110,000 all capital gains? Remember the basis is $350,000 ( the price at which the Seller bought the property). Or is there a formula to blend the down payment received in Year 1 and the principal received each year thereafter over a 30 year period to calculate the capital gains. 

Also, I suppose the interest received each year by the Seller from Buyer's PMT payments is offset by the Seller's interest payments to the Bank on the refinanced loan, but in different sections of the tax return.

Thanks Joshua,

Please use the numbers given. Ignore personal preference, what variables would you want addressed?

To recap,

Seller sells property for $550,00, down payment received = $110,000

Seller carries note on $440,000 8% 30 years receives monthly payment from Buyer = $3229

Seller's owes to Bank = $385,000 at 5% 30 years, pays bank monthly = $2067

Seller originally bought property for $350,000

Q1. what is capital gains to be reported on the first year of sale

Q2. what is the capital gains in subsequent years

Q3. what is the total ROI on the transaction?