All Forum Posts by: Mike Lynch

Thank you very much!

I really appreciate your help..... This is a Great website!

Thanks Everyone!

@Dave Foster

We bought the property for $170,000 in June of 2017, so we have had it now for exactly one year. My wife and I have a ton of labor hours and around $50,000 of rehab money in it. We are not living in the home right now. It is a 2500 sq ft home on .5 acres, located waterfront on the Shallotte River, NC. A "comp" home, 3 doors down from it, which is 2000 sq ft, just sold for $355,000.

What if we put our home up for sale for a similar price and try to sell it? If we get that amount, we will sell it, of course, .... Heck yeah! .... We do love the home and would like to live there, but for the right price we will get rid of it.

What if we can't get that amount, and another year or so goes by?..... Do we still pay capital gains tax on the home that we flipped to purchase this home, or how does that work? Can we live in the home that we are rehabbing until it sells?

Hi,

I realize that I cannot exchange investment property for a Personal Residence.

I was told that I can do a 1031 exchange for a rental or business property.

For instance: What if I purchase a "Bed and Breakfast" or campground with owners residence and live there, or purchase a home, live in that home and operate my plumbing company from that home?....... Am I allowed to live and work in my business to avoid capital gains tax? I am not trying to pull one over on Uncle Sam. I honestly want to live in my property and operate my plumbing company so that I do not need to purchase 2 properties. 

Thanks?

Thanks Guys!

After posting these questions on multiple sites, blogs, and talking to several Realtors in my area this week, 90 percent of the people say "no" to this deal. If anyone is going to create this many restrictions, they need to lease the entire 2000 sq ft. building. This way, nobody with bother them at all.......... I have purchased books from the BiggerPockets bookstore......... One thing that I have learned is "The renter is not the boss"..... "The owner of the property is the boss", and should have total control of their property.

Thanks!

We have more offers to rent the place!...... Okay, I will just tell you!........ It is Edward Jones and Associates. ...... At this point I am not feeling it. I feel more like they will own the place if I sign the lease!

Thanks Guys!

I have a meeting with an Attorney on Tuesday!...... I don't get the Psychological counseling, Military Recruiting Offices, or Hair Salon type of businesses. ....... Do they consider a Hair Salon as a "Dirty Business"?......... Everyone gets their hair cut...... The "Similar" reference is what bothers me the most. Everything can be considered similar in one way or another. ....... Sounds like a good way to get out of a lease to me.

Hi Everyone,

I have a 2 unit, 2000 sq ft. commercial office building, which is empty now. We purchased it this past summer. Each unit is 1000 sq ft. separated by a long wall.  There are two glass front entry doors about 20 feet apart for each potential tenant and two side doors. We just rehabbed it with new flooring, paint, plumbing, etc., and it looks great. ...... A very well known financial company "franchise" sent out a site inspector, then they wrote up a 5 year lease and sent it to me to lease out Unit 1......... Sounds pretty good!.......... Then, here is what they demand below, on the lease........... If they get in there, it will really restrict what I can do with Unit 2. ....... Now, check out item "T" near the bottom, which I have also posted here! ( t) Any other non-professional use similar to those listed above.)

The word is "Similar"......... Well, every business is "Similar" in a lot of ways. They have customers, cash registers, traffic, goods, items, etc. ... No matter what I put in there can be considered "similar"....... Because of this, they can break the lease or take actions against me at any time, right? They want total control over the entire building, but only want to rent half of it..... It might be very difficult to rent out Unit 2 with all of these restrictions.

This is my very first rental ever, and my very first potential tenant ever.......What would you guys do? 

10. Restricted Use

A. The Lessor shall not lease or sell any units within the Building, Shopping Center or Property to the following user(s):

a) Adult video/Adult entertainment stores;

b) Abortion offices/facilities;

c) Alcohol/Drug rehabilitation offices/facilities;

d) Off-track betting establishments;

e) Offices or entities that sell, barter, trade, buy, or dispenses marijuana, for medical use or otherwise; or

f) Probation/parole offices.

B. The Lessor shall not lease or sell the units within fifty (50) feet of Lessee's demising wall to the following users(s):

a) Bars, taverns, billiard halls;

b) Pawn shops;

c) Dance studios or Karate studios;

d) Beer or wine-making stores;

e) Psychological counseling offices/facilities;

f) Unemployment or Social Security offices;

g) Liquor stores;

h) Tattoo shops/body art/piercing tenants;

i) Beauty/Hair Salons, Cosmetology Services, or Nail Salons;

j) Gun and Weapon shops;

k) Smoke/Tobacco or Vapor/E-Cigarette shops;

l) Child Care/Children's gymnasium;

m) Dry Cleaning Plant facility;

n) Veterinarian/Dog Grooming/Animal Boarding;

o) Gym/Workout facility;

p) Same day cash/loan shops;

q) Massage parlors (except for national chains such as Massage Envy and the like);

r) Police substations;

s) Military recruiting offices; or

t) Any other non-professional use similar to those listed above.

C. Each party acknowledges that Lessee may suffer irreparable damage in the event of a breach or threatened breach of any paragraph of this Article. Accordingly, in such event, Lessee shall be entitled to seek preliminary and final injunctive relief, as well as any and all other applicable remedies at law or equity, including the recovery of damages for a breach of the paragraphs of this Article. Additionally, Lessee shall have the right, but not the obligation, to cancel/terminate the Lease, without further liability to Lessor, if Lessor breaches the paragraphs of this Article, and further Lessee shall be entitled to damages from Lessor, including but not limited to the cost of relocating, real estate commissions, tenant improvement reimbursement at the current Premises, tenant improvement at the new premises, loss of business, etc.

Here is a photo of our office building below"

So, what do you all think?

Thanks,

Mike

Great advise as always. ...... I am trying very hard to get some high end tenants in there. They are doing a site inspection this week and drawing up interior plans. 

Anyone?...... Anyone?....... :) .... Just looking for suggestions, not to commit to anything.