All Forum Posts by: Takahito Torimoto

Quote from @Corby Goade:

Quote from @Takahito Torimoto:

Quote from @Corby Goade:

A HELOC is going to be the best option 95% of the time.

People get so fixated on rates, that's just one small piece of the equation. 

HELOCs are variable rates and it's highly likely that they'll actually be LOWER in the near future, why not bet on that?

I've probably done 100 1031 exchanges and never failed at the timing- what was the problem? Did you have a good agent on the buy side? 

I was losing my offers to mostly all-cash buyers, and also they were going higher than I wanted with their offers (usually because I had a ROI in mind) - I was not smart because I think I was thinking the low rates would last a while.

 You can best cash offers at least half of the time if you are creative with terms.  Also need to look at the pros/cons of paying more for an asset vs throwing the money away on taxes. 

I'm sure you've though of that in retrospect, but if you have a savvy and creative agent, beating cash offers isn't that tough. 

 Yep - definitely a lesson learned from missing out on so many opportunities.  I was overly confident, and then the market changed.  Totally agree that giving it away to taxes was a very painful experience for me!

Quote from @Corby Goade:

A HELOC is going to be the best option 95% of the time.

People get so fixated on rates, that's just one small piece of the equation. 

HELOCs are variable rates and it's highly likely that they'll actually be LOWER in the near future, why not bet on that?

I've probably done 100 1031 exchanges and never failed at the timing- what was the problem? Did you have a good agent on the buy side? 

I was losing my offers to mostly all-cash buyers, and also they were going higher than I wanted with their offers (usually because I had a ROI in mind) - I was not smart because I think I was thinking the low rates would last a while.

* Rental A: 235k Equity (Market: 440k) Mort Rate: 2.5%

* Rental B: 140k Equity (Market: 210k) Mort Rate: 4.0%

* Rental C: 130k Equity (Market: 200k) Mort Rate: 4.0%

* Rental D: 75k Equity (Market: 150k) Mort Rate: 3.625%

* Rental E: 100k Equity (Market: 200k) Mort Rate: 3.25%

FYI  these are my mortgage rates for the loans on the properties.

I understand that the Section 121 Exclusion for Primary Residence allows you to sell your Primary residence and not have to pay ANY capital gains taxes on the gains/proceeds - as long as you use those funds to purchase your next Primary residence.

What I cannot seem to find the answer to is - what is the maximum timeline allowed from Sale of the first Primary to Purchase of the replacement Primary residence?  And what are the requirements for those funds during that transition (i.e. do the funds have to be in a separate, isolated account - or escrow - similar to 1031 Exchange) when/if there is a time between the Sale of the first and Purchase of the replacement?

i.e. if I sell my Primary in January 2025, and I cannot find a replacement Primary to purchase (or cannot win any offers) - can I stay with a family member - until I am able to find AND win an offer on a replacement Primary residence?  What if that is 3-6-9-12 months later (although I would assume it has to be within the same calendar year for tax reporting purposes)?  Is there any requirements on where the funds from the proceeds of the original sale are supposed to be placed?

Looking to do some rehab projects this year - mostly creating new bedrooms/closets, electrical rewiring for new bedrooms, adding full bathrooms or converting half to full - and would love to get some contacts for reliable, trustable, and reasonably priced General Contractors in the Atlanta area - I will be concentrating my work mostly in the North and Northwest areas (as far up to Cartersville/Canton areas).

I feel like I have WAY too much equity sitting and doing nothing for me across my 5 LTR properties:

* Rental A: 235k (Market: 440k)

* Rental B: 140k (Market: 210k)

* Rental C: 130k (Market: 200k)

* Rental D: 75k (Market: 150k)

* Rental E: 100k (Market: 200k)

But with the current HELOC/Refinance rates - it just doesn't seem to make sense?

I also have another unique option where I could sell off portions of my equity at $50 increments with a 3% fee - but I would also proportionally lose any cash flow and appreciation - so I'm not fully convinced that's a good option - although I understand I can try to use the equity sold to get higher returns, but I'd need to at minimum, cover the cash flow returns I've lost through the sale. (https://learn.lofty.ai/en/articles/7025226-sell-equity-in-yo...)

I understand I can also sell and do a 1031 - I've successfully done that once, and failed a second time (could not win an offer and ran out of time - had to pay a ton of capital gains tax).  I know I could have gone into 1031 syndications, but 1. those don't seem to have as good returns as I'd want, and 2. I'd like to have better control, so that I can get better returns.

What are my options? Extracting out equity to re-use them to get more/better returns seems like a BASIC strategy I should be doing, but I feel like I don't have any good options now with the current interest rates?

FYI my goal is to always increase cash flow. Appreciation is "bonus". All this equity sitting seems wasteful and looking for suggestions. Thanks in advance.

If I had an investment (STR) property for 2 years (We'll call it property A), but then moved into it full-time (not renting it out) "converting it" into a Primary residence - and in the future, I decided to purchase and move into a different Primary Residence (we'll call this property B) - what's needed to be able to do a 1031 on property A? i.e. Do I need to rent it out on AirBnB or VRBO for a set amount of time?  Or can a 1031 be done with property A immediately (or a few weeks) after we move into property B?  What is the trigger that allows me to officially claim property B as "Primary residence" and how can property A be re-classified as "Investment Property" for the sake of IRS/legal/1031?

Thanks for any help in advance!

Quote from @Malkia Ra:

This is such a sticky situation.  There's just no way of knowing what's really going on.

As unfortunate as this really may be, I believe it's best to proceed with the eviction process.  The tenant was already two months behind before the alleged event.  You've tried your best to maintain communication and get answers/confirmations, but you keep hitting a wall.  You've received no solid confirmation that your tenant is in a coma.

I don't think you're heartless; quite frankly, in my experience, having a heart gets you taken advantage of.  I would suggest meeting with a landlord-tenant attorney ASAP to understand your legal rights as a landlord.

Question:  Has anyone been occupying the rental?  (and if so, are they on the lease?)  Are the utilities being paid?  The answers to this would determine my next steps.

Yes not being able to verify the info makes it difficult.
I did just talk to one attorney and they did suggest the best thing is to start the eviction process - asking for just possession, and not a money judgement (get back rent owed and cost of filing), would make it easier - although he's not quite sure how the court would handle the tenant not being mentally capable (just found out from the fiance today that - supposedly - he's out of the coma but is "sleep-awake" and has no clue what's going on, and is paralyzed on the right side of his body (again, can't confirm anything).

So the fiance has (confirmed) already moved out with the kids and is living with an ex-BF (one of the fathers of her kids) and no, she is not on the lease (another lesson learned).  Only the person in the hospital is on the lease.  My assumption is that the utilities are not being paid - the fiance did mention they were recently struggling financially and he was about to start his new job to catch up on rent when the accident happened.

LOOKING FOR LANDLORD-TENANT ATTORNEY in GEORGIA for property in Cartersville, GA to talk about this situation:

My tenant of 1.5 years was/is 2 months behind on rent.  He's never been late before.  He's the only one on the lease agreement.

But he had always been (or at least coming across as) genuine, hard-working, trustworthy, respectful, and had always been communicative.  Has taken great care of the place as well.  He had verbally agreed to get caught up on rent last week - but I had not heard from him in over a week and he stopped responding to my messages - so half of me got worried that something bad had happened to him (because this behavior was unusual), and half of me was pissed (if he was avoiding me on purpose).

Without going into too much detail (for now; I can add details later), the current situation is supposedly (based on what his fiancé told me) that he got into a car accident a week and has been in a hospital in a coma.  She sent me a screenshot of a photo of him in a coma on a hospital bed from Facebook.  I noticed my text messages and phone calls to his cell were rejected on Friday saying incoming messages/calls are disabled - I also tried from a different number and got the same results; fiancé said his cell phone has been missing since the car accident.  

I called the hospital that the fiancé told me he is at to confirm, but they said if someone is in a coma, their name would not be in the "system" for people to ask and check to see (whether by phone or in person) if they are at the hospital, and only family members would be able to visit.  In other words, I have no way of confirming if this is true.  I did ask the fiancé for information from the police report whenever she gets a hold of it.

As of July 25, when the fiancé said she visited him at the hospital, she told me "The doctor said in the next 30 to 90 days we will see the most progress from him".

What can I do?  If this is true - What are my rights as a landlord (separate from what I can do to be kind and helpful)?  Can you even evict a person in a coma?  I feel stuck because this is a very unique situation - but I also don't want to be "that" landlord.

(Please don't lecture me either on "you're being played" or "you are heartless";  I know "it's a business" and I'm often at fault for trusting people and being too nice which has almost screwed me over a few times; I've also offered to help the fiancé and her kids in any way I can, while also making sure to try to take steps that there's truth to the information I have)

I know this is old but I'm starting to look at replacing my PM with Hemlane.  My BIGGEST concern is - what service quality do I get for the whole turnover process (move-out, inspections, getting it rent-ready, and finding a new tenant)?  That's the "hardest" part I think when you're having to deal with a Remote property.  Thoughts from people with Hemlane experience?