All Forum Posts by: Ingrid B.

Steve Kontos I apologize I couldn't get the @ sign works in the iphone app. For some reasons it just typed the whole full name of someone I replied to. I am interested to know more about commercial lending. All of our properties are SFR or duplex. Hence it's getting harder to get bank loans once you pass the 4,5 or 10 financed properties. Who are the commercial lenders? What are the rates? For example we just closed on SFR today and we get 4.25% for 30 yr fixed with 25% DP. How much DP is required for commercial properties? Thank you very much.

Dan Mahoney We are nothing near that high net worth. This offer is from our local Chase Bank, I do feel the urge that they want to sell these products for commissions. BTW we had previous mortgages and two current ones with Chase. Their rate I think is very competitive, however as we added more rentals they do not lend to people with more than 4 financed properties. Thus, we went to another bank who can lend up to 10. Looks like they want our business back, plus they offer some kind of portfolio financing and other investment stuffs managed by Chase. Im just cautious if this would help us financially or if we better off invest more in real estates

Has anyone used private banker services? Chase, Wells Fargo, Goldman Sachs, etc? Do you recommend them? Any pros and cons? Here's something to throw out there we too have several rentals. Our banker suggested we use their wealth management services, which means invest in their products. Would like to know if anyone can share their experiences, is it a good move? Does your portfolio perform better than real estate or vice versa? Again, pros and cons? Thank you.

We have used Chase Quick Pay. As a Chase customer I receive the rent as soon as they submit the transfer (as long as they are using banks in the same network like Wells Fargo, US Bank, Chase itself etc )and no fees involved. https://www.chase.com/online/digital/quickpay.html

I was like your wife 15 years ago. I was doubting my husband who tried hard to convince me to start investing in RE. I finalized said to him 'fine, but let's start w a small house and see how it goes'. Forward to now we have 10 doors going on to close 11th next month. I never regret doing it and so glad my husband convinced me. It was the best decision we have ever made.

16 years in healthcare IT industry as Business/Data Analyst/PM still earning W2 in the same field. Concurrently 14 years as RE investor. I owe my husband his vision in RE. I was afraid to start investing when we just got married in 2002. Good thing I listened to him and we now work as a team. 7 homes with total of 10 units now, closing for the 8th in less than a month. Had built a new house several yrs ago and now living in it. Hoping to be W2 independent in 2-3 years as soon as my principal mortgage is paid in full. Healthcare IT is a competitive industry. You get burnout fast, high stress and low job satisfaction level. I'm counting the days when I can just do 100% RE - my real passion. I realized long ago that office job sucks but since I still need the benefits I hang tight. Real estate where the money really is if you know how to do it right.

Gentlemen, Thank you very much for detail explanation. 

@Clayon Mobley, what do you mean by max tax rate of 25% for the depreciation? Is that 2017 Taxable Income Rate? Can it go up/down based on your W2 tax rate? So if the Cap Gain is at 15% rate, looks like the depreciation recapture is higher based on my income tax rate... 

The only reason I want to cash out partially is to help pay down my principal house mortgage. Our goal is to be debt free in 12 years but if we can do it sooner, even if we have to pay taxes on the CG for this house, maybe it's worth it... I have several other rentals, I won't do it with the rest. We still have good cash flow on the others and when time comes my heirs can inherit and avoid taxes (@Dave Foster option 2 :) )

I like the idea about taking out HELOC, instead of selling the rental. That may be a good way out for now without worrying about the 1031 or paying cap gain taxes.

Question: For flipping houses, since it's Short Term CG, and also I have W2, would the gain then be taxed based on my income tax rate? I wonder if there is a way to avoid this, maybe putting the property into an LLC or Corp.

Sincerely

Ingrid

Greetings. I own a property that I am planning to sell, it will have long term cap gain. I don't certainly want to invest all 100 % of the proceeds into another property. Say only 50% of the proceeds goes into another investment house. Would the taxable part be then the other half plus "half" of the depreciation? Or are we still responsible on paying the cap gain tax on half of that proceeds plus "full" depreciation?

When we purchased this house few yrs ago we put 20% down. Assuming we want to just get that original down payment back after closing, is it taxable? 

Lastly, I am also considering to buy flipper house. Does 1031 allow investor to buy and sell homes < 1 yr? What's the tax treatment?

Thank you.