Hold or Sell Multifamily with High Appreciation?

52 Replies

@Yonah Weiss if I remember correctly I was quoted 10-15k for my (6M) portfolio. I was informed the cost gets much higher with larger properties.  Maybe regional? Also I could be forgetting the numbers I was given as an example of how high the cost can be. 

Originally posted by @Mary M. :

@Yonah Weiss if I remember correctly I was quoted 10-15k for my (6M) portfolio. I was informed the cost gets much higher with larger properties.  Maybe regional? Also I could be forgetting the numbers I was given as an example of how high the cost can be. 

If it was a portfolio of several properties on different depreciation schedules, I could hear it being $10-15K. Each property would require a separate study. I was responding to your $10k-50K per property comment. It should not be more with bigger properties unless the scope of work is much bigger, since the fees cannot be contingent to tax savings. For example a 300K sqft office building will have a lot more work involved for the engineers than a 30k sqft office building since the engineer will need to go into each suite, if the buildouts are different. However a 10 unit multifamily building and a 200 unit multifamily building will not be that much more work since the engineer is only required to go into one of each unit type and use the findings to apply to the rest.

 

@Carlos Gonzalez

Well you are in luck my friend. This is the golden age of information. In 30 minutes or so and YouTube/google you’ll be a pro.

Seriously, it's a big subject that I'm not smart enough to defend, but the biggest reason I decided against it was I went from one LLC that onwed several things into several LLCs that owned one thing each. Also, percentage of debt was an issue and debt structure. Either-way, get YouTubing and get smart about it. The one I did gave me a very large write off on a building I owned 6 months wiping out some pretty big gains. I think 1031's has its place. If you are truly going like for like and your selling in a LLC that just has one thing and that LLC will own the new thing it's probably the best vehicle, but if there are more layers to the transaction or partnerships etc it gets messy fast where cost seg is clean, yet has its own downsides. I went more in depth than I wanted. Lol. Check out the internet and learn from people much smarter than I on the subject.