All Forum Posts by: Bryan Christopher

Quote from @Russell Brazil:

I'd simply ignore them.

 Haha. I love this one. They've been very underhanded and petty though, I do expect a court filing if we simply ignore. (As appealing as that sounds) 

Hi all, 

Wondering if anyone has a similar experience and how you may have handled it. 

We sold our (primary) home recently. The buyers did a long inspection, multiple days... made a huge request for concessions based on what we knew to be purely made-up issues. (They claimed thousands for electrical using what appeared to be a fake electrical company, and they never had someone out to even check electrical beyond the general.) 

All that said, we just met them in the middle and gave them the credit because we wanted it to be over. (We had already given them a reduction on the sale price under market.) 

A month post closing, the son of the buyer (mother) has written a "legal" request to have us buy him a new refrigerator.  Why?  In my round-up note as we moved out, I mentioned that the ice maker in the fridge hadn't worked in many years and the model was known for issues so we just never replaced it. (8 year old fridge.)  It's important to note that they didn't check this in inspection, but I didn't disclose it either. Not for any reason, I just didn't think of it... and they had asked for dimensions of the cabinets to replace the fridge anyway. 

(They did multiple inspections, also came for several full afternoons to just poke around the house while we were living there.) 

So, he's claiming the home warranty won't cover... fine, what's the repair cost?  No... he doesn't want it repaired. He wants us to give him $2000 cash so he can buy a new refrigerator because I didn't disclose that the ice maker didn't work on an 8 year old fridge he insinuated he was replacing. 

I would have been fine working out a way to get it repaired had he come to us in any kind of civil or proper manner. Instead, he wrote a threatening letter (first contact since closing) and demanded thousands of dollars. 

Thoughts on how to proceed?  

Thanks in advance! 

Quote from @Dave Foster:

@Bryan Christopher. You can convert your primary residence to investment then later sell it. And as long as you've lived in it for two out of the previous five years, get the 121 exclusion. If you end up with any leftover gain, you could also do a 1031 exchange and defer the remaining tax. You can't do a 1031 exchange into property you already own or use the proceeds to make improvements on property you own. 

Extremely helpful, thank you so much Dave! 

Quote from @Dave Foster:

@Jake Andronico, thanks for that shout out.

@Nima Rezvani Yes you can 1031 from one investment property to another investment property and then later convert it from investment to your primary residence.

Hi Dave, 

Forgive me if this question is obtuse, but I was actually wondering about doing the exact reserve. I live in a house (for 7 years) that someone would like to rent. I have a rental. Can I sell that rental and 1031 the proceeds into THIS house, get myself out and a renter in... classify it as a rental and not take the capital gains hit?  (I'd be moving to another primary residence so I'd end up with 1 primary and 1 rental still, just a bigger more profitable rental with almost no mortgage) 

If I did this, what would the time frame look like - how to I "prove" it's a rental now and not my primary?  Seems like maybe a less common scenario, but can't be the first time someone has done this. 

Thanks in advance for any knowledge! 

Quote from @Katie Balatbat:

@Bryan Christopher

There are several considerations that can go into the analysis...

Hi Katie, I responded but for some reason it didn't post. In short, thank you so much for taking the time to respond. I'm digesting this info... and looking into some of these options including the pass-through entity which I admit I'm not familiar with. The property is indeed in another state (NV) so it sounds like that does increase the LLC maintenance/fees. Still, I'm going to try to contact my Umbrella policy and see exactly what they cover in this regard. Good idea.  Really appreciate your time and detailed response! 

Thanks Tracy, 10-4 on the renters insurance suggestion. Can you explain this statement a bit more for me?  "We require the tenants to prove a landlord liability policy for $100k."

I haven't heard of this practice, sounds interesting....

Greetings all, 

I've read a lot here and have heard conflicting opinions. Wanted to just gather some data and see where the current thoughts on the topic are landing...

I'm a California resident. I own a 3 bd SFR in the Las Vegas area. (Since 2016)

Currently I am not using an LLC for the property. I looked into it last year, but decided not to right now and I won't give the reasons... rather I'd like to hear any input.

I have homeowner's/hazard insurance on the property through my mortgage, but I do not have any additional landlord insurance or other coverages.  

We (wife and myself) do have an umbrella policy. 

Do I need to change anything in this scenario? (Add/change coverages, add LLC etc?)

With the market climate being how it is, and tenant quality becoming more challenging... I'd love to hear any input from those who have knowledge. 

Thanks in advance! 

Hi BP...

Getting close to my first out of state investment (Los Angeles - Las Vegas) and looking for a Vegas-based tax advisor who might be able to consult me on some of the early issues related to purchasing out of state, specifically NV of course. If are a CPA (or know a good one) with knowledge of these issues, I'd love to book some time and chat a few things out. 

Thanks in advance for any advice/leads!

3 parking spots and I think the leases aren't short term so much as towards the end of 1 year for example. 

But these are all terrific and writing them in Evernote as we speak!  Thanks for the input!

Hi all...

I'm going to see a triplex for a potential buy and hold rental property tomorrow. I've been researching here (and elsewhere) for a long time and am working with a great agent.  But, i was wondering what kind of checklist you guys might bring with you? (Mental or otherwise.) 

A few tidbits I do know...

- I know the area - very good, very familiar with the rents/appreciation, etc. 

-I know the individual (and gross) rents/gross income of the property. 

-2 of 3 units are rented, receiving applications for the 3rd. (2 units under short term remaining leases.) 

-Sidewalk visual inspection - No apparent major issues/looks well kept

-No rent control

Besides inspection/title search and other basics, are there any other formulas, things you like to ask for, things you've learned from mistakes with multi-units, etc? 

Would love some input so I can do my best in a short time period tomorrow. It's a well priced property in a good area so I'll need to move reasonably fast doing my due diligence. 

Thanks in advance all!