All Forum Posts by: Trey McGovern

Hey Marvin, nice to have you in the area and looking to invest!

Myself and @Stephen E. host a real estate investors meeting here in New Bern at the Chamber of Commerce on every second Thursday of the month from 6:00-8:00 pm 

We are called the East Carolina Real Estate Investors Association or ECREIA and we would love to have you out. I also work on a sales team and am a very active investor myself and we have a team member who specializes in Kinston specifically and who is also moving in the investing direction. 

I would love to connect the two of you, just send me a private message and I can get you his info. 

Trey

Hi John, and welcome to BP!

I am also from New Bern and invest in the area and would love to chat with you sometime. 

@Stephen E. and I also host the East Carolina REIA meeting here in town on the second Thursday of every month if that is something you might be interested in attending.

Lets link up!

Hey guys, 

Thanks so much for all the interest and responses! Looks like we are going to have a nice turnout for our first meeting. 

If you would like to be added to our email list for this, please just PM myself or @Stephen E. and we will make sure you are setup to receive the communication from the group. 

Additionally, you can head over to our Facebook page for updates and articles at facebook.com/ECREIA

If anyone has any questions or suggestions, please feel free to shoot them on over to us as well. We are in the infancy stage and want to really make sure we are providing a high-quality atmosphere to our members. 

Thanks!

Trey McGovern REALTOR®

hey Stephen let's chat. I've been thinking of starting a small meetup here in New Bern

First thing that pops into mind are zoning issues trying to turn some of them into Multi-families. Thats not much of a problem for this house though as it was zoned commercial for the bed & breakfast aspect. Then again though, with zoning and multifamilies, you still need a certain amount of green space, and I am not sure the city would be willing to negotiate on that factor. 

Turning it back into a B&B and maybe just straight streamlined to an Air B&B model might be the best thing for this house unless it goes back to single family residence. 

As for the demographics, we tend to be more retiree friendly in these parts than millennial geared, although our supposed average age for the area is about 36 years old. 

Im a huge fan of our beaches and  water access in general. In fact I make it to Beaufort, Shack, or the Circle most weekends from spring through late fall. Just such a beautiful area. 

A beautiful Bed and Breakfast that is HUGE but well distressed just reduced to about $125,000 with a tax value just north of $300,000. 

6 Beds

4 Baths

3200 Sq. Ft. 

These deals exist! This B&B is about a block from the river!

Michael, lets talk!

I am an agent here in New Bern as well as specializing in finding myself and clients rental units of all types. 

Direct message me here and we can speak further! I would be happy to assist you. 

 Hi Tom, I sent you a colleague request and some questions I have about the property. Just wanted to make sure you were receiving the notifications since it seems you are a new member. 

Welcome to BiggerPockets, by the way. 

 That covers pretty much what I was looking for. Thank you, thank you, thank you!

@Brandon Hall These rules will basically make it difficult for you to claim the net taxable loss (if any) caused by your self-rental. 

>>> Im not concerned with creating or fabricating losses to reduce my liabilities, and I would certainly follow all the rules. I am curious if this efffects the depreciation value though. If that is what technically makes you have a loss, is that not considered? Or would certain things be considered separately? Like depreciation? would it be allowed? Interest on mortgage?  

@Russell Brazil You will miss out on the greatest tax break available to the american public, the $500,000 exemption from capital gains on a primary residence sale. 

>>> What if the plan is to hold for 30+ years? And then if I do buy it personally at first, and want to turn it into an investment property to get it out of my name, what does that look like? And how do I avoid the potential taxes? 

@Joe Splitrock

@Joe Splitrock If this was allowed, everyone would just rent their house back to themselves at a loss. We could take all repairs, lawn care, utilities and insurance as an expense. The problem is you cannot claim expenses from your personal residence as a tax write off. You cannot take a loss on your primary residence through depreciation.

>>> So even if it was structured, run, and documented like a legitimate business model as if I was renting to any old John Smith out there, I couldnt make any of these deductions and it would still be considered as my primary residence and disregarded as a business holding. Even though it has current history for 5+ years as being a rental property, and it would be held under my rental company next, with intentions of it being such a property, with me being the tenant for the first 1-3 years of ownership, it would not be regarded as such? 

You are the first person I have heard with this great idea, which leads me to believe it is not as good as you think. 

>>> Bit harsh, dont ya think? Im six months into this and trying to figure out best practices and strategy, so I dont know that its kookie, and I certainly dont think it ever hurts to ask questions and learn why it is, or may not be, the best practice. 

And I certainly hope you dont believe that just because YOU personally havent experienced something first hand that it makes it invalid or somehow less deserving of discussion.