I need help in picking a property in rapid city south Dakota or tips on picking the right multifamily
I have been to Rapid City twice in my life - July 28th-August 2nd and August 18-21 of this year (2018). I had to pick up 3 houses quickly for a 1031 exchange. None of them fit the 1% rule, but we are on a 5 year plan to get out of these properties. As much as I'd like to help, I'm not really a good resource.
In general, reading the forums here about how to pick and analyze a property is sound advice. Rents won't go up over about $1800 even for the nice houses on the West side, so I'd look for a duplex North and East of Canyon Lake for a higher ROI. It makes sense for my group to lose a little money compared to how much we were going to have to pay in taxes so that hitting the 1% rule isn't a big deal breaker for us. We will pay less in taxes now that the cap gains are spread across multiple properties that we can sell individually in the future.
@Cary P. can you explain what you mean when you say, "We will pay less in taxes now that the cap gains are spread across multiple properties that we can sell individually in the future." Did you 1031 a larger property into multiple smaller properties and if so I am wondering how are you able to reduce capital gains?
Yes, we split into smaller properties, so we will be able to avoid the 3.8% Medicare tax when we sell if we sell them in different years, which is our plan.
Thanks for the advice.I appreciate it
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