All Forum Posts by: Wes Tuinstra

At first blush I would say that if you know for a fact that
you'll be making more during "retirement" than now,
don't defer taxes until then...pay now the cheaper bill.

But I have to tell you...there are so many variables, you
really need a financial analyst to go over your stuff
carefully -- make a spreadsheet for you -- and get some
solid advice.

The reason I say that is this...if you defer taxes now, what
use will you put the money to? That's the clincher. If you
have a hum dinger of a use, then screw the larger taxes later!
Take advantage of the investment now.

And just let me say this too: just pray for the day when your
holdings and taxes are so complex you need a CPA to figure
it out. Cha-ching! You keep on making the money and let the
CPA keep on earning her fees.

I'm not a lawyer but...

You have to hold the replacement for a year and a day.

Sorry... :cry:

First,

Welcome to the forum Jries34! We're glad you're
here and you honor us by bringing us your difficult
questions (on the theory that we have all the answers!)

I agree with GarGus. Truthfully, because you knew about
the problem and didn't do anything, you're going to
eat it in the end.

What could have been done differently? You could have
insisted that the seller fix it. You could have fixed it
yourself and had the seller come down in price to compensate you.

Your lawyer may tell you that because of the laws in your state
you actually can make the seller fix it at this late date. So it's
worth a consult. Just don't hold your breath!

Yes, the "subject to" is probably the most typical.

Whole books have been written just about that
strategy alone.

Excellent BigGQ! :beer:

Big pat on the back to you. Job well done.

(Well, someone has to praise you...your wife
never will :D )

You could take a HELOC for the (20%) downpayment and get
traditional financing for the remainder.

Ask yourself this....

Will the rental payments each month be more than the
mortgage payment? If so, do it.

The rental payments should equal 1.5% of the price you
paid for the house. Will it?

Welcome to the forum!

We're glad you're here.

Ravenwolf,

You take the incoming rent and subtracted the mortgage
payments...so far so good.

But there are other costs -- many other costs -- to include.
Taxes (!), insurance, water, sewage, garbage collection.

I know you're excited, but slow done and figure the costs
carefully.

Generally,

You should not get into deals that don't cash flow.

However, that being said, if it truly is cash neutral, then
in the next few years the rents will probably be able
to be raised and then it will be cash flow positive.

There is also the potential of appreciation.

But....But....But....the value could go down near term,
taxes could go up, and rents stay flat, or you have
vacancies.

You have to be very financially stable to handle that. Are you?

Thanks for bringing this to our attention.

And I can just about guarantee that others will be interested.