All Forum Posts by: Tobey Humphries

I need a bank recommendation? I have an investment property and would like to secure a HELOC and then use the HELOC as the down payment on my next residential home. What's the best deal out there?

Thank you everyone for your responses.    I won't lie, my head hurts after trying to figure it out.  I'm truly greatful for your input. 

Thank you Kyle!  Great info. 

I need to know what questions I should ask when shopping around for a HELOC. I just found out my bank doesn't offer a HELOC. This is pushing me out of my comfort zone (probably a good thing), but in researching what bank offers the best HELOC I was struck with the realization that I don't know what questions to ask or even what terms are good. I've realized, to my folly, that I would have just been happy to have secured one. Can anyone tell me what questions I should ask and for each question what would be an acceptable answer to my question from the bank?

Bonus round: What are the top 5 HELOC providers you'd recommend me to contact?

Bonus round:  How much shopping around can I do and for how long before it negatively effects my credit score?

Left coast tax....  I actually laughed out loud.  Thanks for the input Wayne. 

Team BB,

How much money should I hold onto from the sale to prepare for tax time? 

I had a tax question I was hoping you could answer about a rental that I've recently sold (did not do a 1031). There's three places I've identified were I could have (or have already paid in advance) to pay taxes but I'm not sure.  I could be completely wrong.  The rental was bought for 244k and sold for 262k.  I had the home for 10 years and benefited from depreciation.   

1. The portion of the gain. In my case it's 262k-244k = 18k. 18k would then be taxed at 20% (or 25%)?
2. Depreciation recapture. In my case it's 244k-44k (10 years of depreciation). The 44k would be taxed at 15%?
3. CA Franchise tax board. Escrow withheld .0333% = $8724.60 as a prepayment come tax time.  I have no idea where this came from, it was like a sniper in the woodline.   

Is the amount in #3 is intended to pay a part of #1 or #2, or if it's a separate tax?  I also don't know if my understanding is correct for #1 & #2?

Given that escrow is holding onto $8724.60 I want to know what I will have to pay, if anything, come tax time?

Thank you in advance for tackling this!

Tobey

Thank you Dave!  Good information and very helpful. 

Hi Team,

I'm about to sell or do a 1031 on a home and I can't get a straight answer on what I'll be left with afterwards.  I definitely don't want to be blindsided come tax season.  I owe 200k and will be selling for 300k.  Could someone smarter than me explain/breakdown what I'll be left with to either re-invest (in the case of a 1031) or pocket (if I decide to go that route)?  What's the cost break down?  The property has been a rental for 15 years and I'll be using a real estate agent.  I've re-financed 3 times.  I use depreciation as a tax right off every year. 

1. If I sell the house and pocket the cash what will I walk away with and what kind of taxes can I expect to pay?  What's the cost beak down?  When do I pay those taxes?  Do I have to pay for all the years of depreciation?

2. If I do a 1031 exchange, how much will I have to re-invest?  How do I structure the deal to be a 1031 exchange and at what point do I need to address the sale from a tax perspective? 

You rock for giving the clueless a clue.  Thank you for your help in advance. 

Tobey