All Forum Posts by: Timothy Lin

I remember hearing on the BP real estate podcast at some point Scott describing how selling an investment property after 5ish years and trading it in for a more expensive property was the right move financially. The reasoning, as I remember, was some combination of 1031 exchange, increasing ROE, and leverage.

Does anyone have a good resource or explanation summarizing the logic? In other words, what are all the benefits of 1031’ing a rental property worth 300k for a property worth 600k?

Thanks!

Thanks to all of the perspectives and advice.  Unfortunately our lawyer has not been as elucidating as I would have hoped.  Really, there is no clear guidance in the lease.
therefore, I think the smart move is some combination of the above where we offer to compromise and help replace the unit and have some portion of it prorated along the lease.

really appreciate the thoughts!

I am the landlord of a commercial building, occupied by a restaurant that has been there for 25 years.

The new business owners will be purchasing the business from the current owners and will be our new lessee's.  They got an inspection that shows the AC unit which is ~30 years old should be replaced.

This is a triple net lease and under utilities the lease states:
"The Lessor shall provide and the Lessee shall pay for all Lessee's utilities and water and sewer use charges."

Beyond this I don't see anything else regarding an AC unit.  Does anyone have thoughts either way?  Of course will discuss with our lawyer as well, but curious what experienced landlords in triple net situations on BP think.

Thanks.

all great thoughts. Thanks for the input.  Based on what I can read from the property card online, it doesn't look like there were any building substations, change in zoning, or other restrictions. But I'll certainly go to the assessor to find out.

I'm looking at a property owned by an LLC (property A). It is rural land in new hampshire, about 130 acres, without any improvements. It abuts another piece of property owned by the same LLC with a home on it, about 115 acres (property B). The owner of the LLC was recently imprisoned in 2017 for defrauding customers of his business. Property A's assessed value went from $186,900 in 2015 to $3,450 in 2016.

I'm wondering if anyone has ideas on why the assessed value might have gone down by 98%?  If the trial was ongoing in 2015 or 2016, could that somehow lead to decreased assessed value (if somehow property taxes weren't being paid and the town took this into account when assessing)? Are there other common ways that assessments go down by so much?

Thanks for any thoughts.

I'm evaluating a property in NH.  It has 100 acres, with a house and a barn.  It was purchased in 2008 (just prior to the crash) for 632K.  The owners allowed a cell tower to be constructed on the property last year.  This produces approximately 15K annually, with an easement on the property.  It is unclear whether the sellers have struck a deal with a 3rd party of the tower operator, but for the purposes of a sale, they are saying that the cell tower easement will remain, and there will be no income or benefit to the buyer once the house is purchased.  Home prices in the town have gone up slightly, perhaps up to 10%, since 2008 on average.  Current asking price is $750K.  In my opinion, a house/property that has not been even slightly improved since purchase in 2008, and now has a new easement to a cell tower company that may be permanent, in a market that has not gone up much in the past 9 years, should be worth less than it did 9 years ago.

My specific questions are:
1.  Does the easement, without any benefits from the cell tower, inherently lower the property value?

2.  If the 15K/year was included in the purchase, would you expect the purchase price to be much higher than what it was if there were no cell tower?  The sellers quoted 254K as the value of the lease assignment and are expecting that to be negotiated separately from the purchase of the house.

Thanks!

I purchased a condominium in 2006 and lived in it for four years. I have been renting it out ever since. I never knew about depreciation until I started listening to BiggerPockets and realized I have been missing out over the past six or 10 years. I have been doing my own taxes on TurboTax, but definitely will be using a CPA from now on. My question is if there is any good advice on how to retro actively claim depreciation or what the best strategy for managing my mistake will be? Though I live in New Mexico now, my property is in Massachusetts, not sure if it makes any real difference.