All Forum Posts by: Sherry G.

Hi, we are in escrow on a property where a portion of the property/backyard is encroaching on the neighbor's property. The neighbor happens to be a developer who is willing to do the paperwork for a lot line adjustment to give us the land for free. Only thing is that part of the property that is encroaching has an unpermitted addition (but on the original slab of land) and we have heard los angeles can deny the lot line adjustment even if the current owner is willing to provide it if there is anything unpermitted. Anyone have any experience with this? would be very much appreciated!

Hi all, 

We are in the process of selling our coop and have been asked by our attorney to complete NYS Form IT 2664. We lived in our coop 2 of the last 5 years? Do we still have to pay NYS income tax on the gain? Anyone familiar with what the exemptions are for this form and any other advice in general when filling it out? Thanks!

Thanks Steven and Caesar for the input. How is the sales market for coops doing right now? On average how many days is a coop on the market before selling and are they selling at, above or below asking? 

Does anyone know a lender that will finance a nyc coop purchase as a 1031 exchange? We are being told that no bank will do it.

Any leads would be much appreciated.

Does anyone know a lender that will finance a nyc coop purchase as a 1031 exchange? We are being told that no bank will do it.

Any leads would be much appreciated.

thank you both. We live in LA and would be interested in investing in Southern California 

Joe, that's great. We have one duplex here 2 miles north of downtown la. We purchased it in the beginning of 2016. We live in one and rent out the other and so far the cashflow is good. We definitely overpaid a bit for the property (it was flip) so haven't been as luckily re appreciation as of yet. Assuming the downtown boom continues then I am hopeful re cashflow and appreciation. We are having the same difficulty finding multi-families that will cashflow well and feel like everything is topped out as far as appreciation. It's part of what makes selling nyc such a difficult decision. 

Hi Michael, 

Yes, the fees are so high and what worries us is if we can't do a 1031 properly in the future we will be stuck paying at least 40-50k in capital gains taxes if we were to sell for the same price we would sell today! We are leaning towards using a broker, which is especially crazy since I have a ny broker's license (I got it through being an attorney), but given that I live in LA it will be hard for me to arrange an open house and showings. I thought about asking to split the commission with whatever broker we use, but am hesitant because if we use a broker, I want them to be fully committed to our listing and not prioritize another listing where they will make more. 

Hi Sam, 

Thank you for your input. It is tricky which is what makes it so difficult deciding! Please see my responses below in brackets. 

Best, 

Sherry

I think the most important question is what are you interested in doing? [If we sold it, we would be interested in buying a multifamily that has both cash flow and appreciation potential.]

Has the hassle of keeping the property become too much for you? [It hasn't really been a hassle. We rented out a month before we left the city and those tenants renewed. This August will be the first time we would be renting it out cross-country. The issues that did come up, we were able to get our maintenance company/super to handle or we handled directly with the the tenants. ]

Is it too difficult for you to manage it from the West Coast? [See above.]

If you are cash-flowing negative though, then you should really ask yourself how you are benefitting by keeping the property. You would be better off with the money sitting in a bank account than paying to keep the property. [So far the only benefit is we've see appreciation and someone is essentially paying our mortgage. The most conservative estimate we've received from a broker is a 20% price increase (50% cash on cash ROI) from what we bought it for less than 4 years ago. That said the building does not have a good reserve so we have to factor in that any repairs will be paid for via assessments.]

In terms of the market, now is definitely a very strong sellers market. You will be able to command a higher price now with more offers and options than in the past. That doesn't mean that you will not be in a similar position in the future. [Do you see any softening of the new york market as compared to last year? How about the rental market?]

Now, this is what I consider the tricky part, considering the fact that you are in a sellers market now means that if you are looking to put that money into another property, you will be paying more than if you waited for a buyers market to come around. The option of selling now and waiting to buy might be a solid option except you will not be able to do a 1031 exchange, which may not be a problem since you have lived in the property for 2 years. Depending on where you live though, you very well may be able to find a property that will be cash flowing positive for you, which should be one of your goals. [Exactly, If we sell before August 2018, we will not need to rely on a 1031. The socal market is very hot right now and we keep looking at multifamilies, but so far its been hard to find ones that cashflow postive and also hard to find any that have more appreciation potential given how expensive the market is right now. We could sell now and wait patiently for prices to soften, but who knows if that will happen.]

Also, have you been looking in your local market at what your options are there? [See above.]

Hi Joe, 

We do not have any capital gains as of yet. Do you own properties in socal? What do you think about the market now? 

Thanks, 

Sherry