All Forum Posts by: Steve L.

@Ricardo Taveras I second what @Shauna Abbott said. I've been buying VA and refi out to reuse since the mid 1996. The funding fee increases with additional use unless you're a disabled Vet who would have no funding fee. You should talk directly to a lender and they will give you guidance.

Piggybacking on this subject.

@Natalie KolodijHow would this play out for the realtor that spends +750 hours as a realtor but also owns real estate with property manager? Additionally, if that realtor were to operate as a realtor and mortgage officer, would the IRS then come back with requiring said realtor spend more time as a realtor than as a mortgage officer? Thanks in advance.

Big thanks to @Dave Foster. He was more than accommodating as an accommodator in answering my questions leading up to my exchange last year. Particularly in his explanation of 1031 as a tool over multiple generations. It totally gave me new prospective.

@Jorge Perez No problem. I’ll also add, just because you plan to sit with a professional, it doesn’t mean you shouldn’t educate yourself by reading actual legal statute before your CPA meeting. That way it’s not a situation where you’re putting blind faith in your team member.

@Steve L. I meat to write wait two years to do a post 1031 refi.

@Jorge Perez In my humble opinion, anyone questioning whether or not they should pay capital gain, take depreciation, or if they have to wait 2 years after a 1031 should really sit down with their CPA to formulate a plan. I’m no CPA, but after doing an exchange last year and having to amend a tax return the year before due to failure to claim depreciation on a property previous property sale, I came to a few conclusions. I’ll never not claim depreciation, never chose to pay tax on gain of my own free will, and never sell in less than 13 months.

My view is, tax paid, whatever the amount, could have purchased x4 to x5 in property. Failure to consult a CPA can be financially devastating without even knowing how it’s affected your growth.

@Michael Guayo I have a question out of curiosity. Will your partner also be occupying the property with you? If so, why are you guys choosing to go FHA low down vs. VA no down?

@Trevis Kelley As a fellow Vet, thanks for serving. All of the suggestions above are good ones. If I were in your shoes, I would sit down and see where every penny of your income is going, study the debt snowball and get my consumer debt down and keep track of my credit score once it’s fixed. You also said you were having trouble finding work. Sometimes getting any job you can find might be enough to fund a home based business in order to lower some of your living expenses to put toward investments. You should talk to a tax pro to see how beneficial it would be. I’m no financial advisor or tax pro, but I am a Vet and I’ll tell you that there are tons of Vets that don’t know the benefits they qualify for. I see you are a disabled Vet I assume. So many

Vets go through life not using and reusing their VA loan entitlements. I've used it over and over for the past 23 years for 100% financing. You'll just need some chloroform and handcuffs for the wife when it's time to move every few years to a new place and make the old one a rental.I wish you the best of luck.

@Samuel Iwu I think you should make an informed decision. Sit down and calculate what your annual cash flow vs taxation would be if you had no mortgage interest with a property’s expenses on one property, then calculate annual cash flow vs taxation on 3-4 properties and their expenses including mortgage interest. Any left over amount Uncle Sam and your state governor

will help you by investing a portion in pothole repair lunch breaks, subsidizing the care of dogs owned by the homeless and conducting study to establish if a study is needed to study the effect late night/early morning traffic has on marsupial wildlife living near the freeway. Then decide if having no mortgage payments helps you sleep better at night vs having multiple mortgage payments auto pay does.

(This comment was composed and designed to reflect the the current thoughts of the commenter and was not meant to insult the innocent or their dog. No offense, or offenses should be taken out of context)