All Forum Posts by: Sinavy Sao

@Katie Lepore

I’m also looking for a real estate friendly CPA that knows his/her stuff and has the time to answer questions! I’m in the north Orange County/South LA area.

After weighing the options, I've decided to go with 2 of the 3 options; sell and reinvest the profits into property out of state as well as use the existing HELOC to start making offers in the mean time.

Why wait if I already have the HELOC to make cash offers? My only regret is not finding out about BP and BRRRR sooner.

A 1031 is still on the table. Just weighing the option of taking the hit on taxes. Can anyone verify that it’s about a 30% long term capital gains tax on the profit in CA?

@Anthony Barbato

So with a syndication, since you technically own the property you would get the same tax benefits including ride offs/depreciation?

The next question is how do you trust someone to invest your money for you?

@Trent Chance

I’m not to familiar with syndications yet but will look into it. Anyone care to give a quick summary of how it works?

@Dave Foster

1031 sounds great but the timing makes me nervous. I don’t want to just buy a property just to save on taxes but over pay as well as rush to pick them.

Is there any wiggle room around the 45 day rule in designating properties?

@Tony Lin

Yes we’re definitely looking to go out of state but not sure where to start. How does Pittsburgh, Memphis or parts of Tx sound?

Hi all. I'm new to BP but love all the logical advice that sounds crazy to the common person.

Here's my situation:

I have a 4 plex (in CA) that I paid $700K for a few years ago (25% down) and I now owe $485K.  Its now worth about $1.4M.  Cashflow is variable between $1-3K/mo depending on repairs (avg over last 4 years is $1600/mo) and there will  likely be plumbing and roof issues that may eat into my cash flow soon.  I would like to sell and use the money to invest out of state.  

What would you choose between these 3 scenarios:

1.  Sell, walk away with $850K and do a 1031 exchange with lower cost states with multiple SVH or MFH.  I'm kind of worried we may not have enough time to complete the purchases in 6 months or be able to identify the right amount of properties in 45 days and will have to take the 30% hit in taxes! 

2. Cash out refinance.  Pull out 4-500K and use that money (tax free?) and invest out of state.  Cashflow drops to significantly to $0-1.5K/mo but still own the property.  I originally invested $175K so I'd get my invested many back.  

3. Use at HELOC($250K available) on the property to invest out of state, likely do a BRRRR.

Any helpful advice would be much appreciated!