All Forum Posts by: Vince Coffeen

Rent control for Saint Paul passed with a 3% cap on annual rent increases and no mechanism for adjustments based on improvements or resetting to market rates between tenants.

What are some thoughts on how to make the most of this situation if you have properties in Saint Paul?

@Bruce Runn

Excellent Bruce, thanks for the tip!

Recently purchased a residential triplex on Grand Ave in Saint Paul and the garage is in horrible condition. We are interested in tearing it down and replacing it with a three car garage with two separate living units above it. This would require some serious planning and foresight so we are looking for any architects with that kind of experience. Please recommend any good ones you’ve worked with.

Thanks!

@Dave Foster

Thanks for the reply, we ultimately decided to put the property back in our names and proceed with the 1031 exchange. In our situation it was worth the extra couple hundred bucks in legal fees to delay the full tax bill.

@Jacqueline Gardiner

Just eating the $9k is definitely one of our options on the table, we’d consider it an educational expense lol. Thanks for the response!

@Jacqueline Gardiner

Just eating the $9k is definitely one of our options on the table, we’d consider it an educational expense lol. Thanks for the response!

My wife and I just put our first rental property (condo) into our LLC with the expectation of finding and buying a new property to purchase with help from the proceeds from a 1031 exchange of the rental condo. We are the sole members of the LLC.

We found a great place much sooner than we expected but the exceptional financing we secured must be in our natural names because it will eventually be sold to Fannie Mae. According to our lender they will not accept LLC's holding the loan.

We have owned the condo in our names for about ten years and we just had our lawyer who incorporated our LLC perform a warranty deed putting the condo in the name of our LLC less than a year ago.

We are in a conundrum.

We have a purchase agreement signed with a buyer of our condominium and a purchase agreement signed by the seller of the multifamily property we intend to buy. We are set to close on 26 February so we have to move fast. We stand to learn about $61k on the sale of the condo. Our 1031 company said we must have the owner of the relinquished property and new property match exactly. So we have a few questions about how to navigate this situation.

1: If we had the lawyer transfer the condo back into our names ASAP so we could secure the best financing and have the owners of both properties be our natural names would that raise any red flags?

2: Because we have transferred the property out of our names into the LLC and potentially back into our names all in less than a year, would that put us into the short term capital gains category or would it be long term because it was really us behind it all along?

Our lawyer is not responding due to the holiday weekend and everyone else on the team (1031 exchange company, our tax person, our realtor etc.) is having us refer to everyone else in a big circle.

Thanks!

@Bruce Runn

You’re exactly right about options, we are lucky enough to have several, so this post here is part of the research beyond general knowledge and drilling into more local examples of what people have done and are doing.

I did some sleuthing and that property looks pretty nice Bruce. Would you mind sharing the numbers on that and also what you’re doing for spring?

Thanks

@Daniel Anshus

Thanks for the tip I’ll look into that.