All Forum Posts by: Adam Boertje

@Khemaro Nuon

You also have to buy a property at least the same amount as what you sold or pay some tax.

Example: you sell your property for $500k and have $200k in capital gains... the new property has to be at lest $500k and you must reinvest the equity amount ($200k- realtor and closing costs) in order to not pay any capital gains. So you can be taxed two separate ways if you don’t fully spend.

I went through the entire process w 2 properties under contract in the 45 day period and backed out of both and ended up paying the capital gains.

@Alex Mao

On a 1031 exchange, I think you you have identify a new property within 45 days and close on it within 180. Otherwise, I think he will be paying some pretty hefty capital gains tax no? Can someone more experienced confirm this?

@Dave Foster thanks for the replies. Yes I have considered doing a BRRR on it as well. It’s in a town of about 200 people so not much of a rental market I presume. But someone who wants to run some horses or cattle, it would be perfect. It’s a 2400 sq ft house with window units to heat/cool but fully furnished wIth nIce stuff. Mortgage payment is $1300 so I think there is a little room for some possible cash flow if I decide to rent.

@Jacqueline Gardiner the ranch was a property I acquired with a house on it that hadn’t been lived in in for 5 years. I’m about 90% complete but have never rented it. We stay there a handful of weekeekends a year,not out primary residence. It has basIcally been used for recreatIon. I’ve also considered renting the house. But with the land, not sure I could get any positive cash flow from it.

I recently closed on my first SFH rental with tenants moving in. I also own a 156 acre ranch that I’ve rehabbed the house and I’m thinking about selling. If I sell that, is it just the profits that are subject to being taxed or the entire amount? I put 50k down on it 3 years ago and I expect to make about the same, giving me around $100k to reinvest. My 2nd question is can I just put that towards the loan I just took out, or will it need to be applied to a different property to avoid being taxed? TIA

Thanks for the reply. So my mortgage payment of principle, interested insurance and taxes is going to be $1635 I believe. What would be a god rental rate in this situation if achievable? $1700-1800 I presume? There are two other houses in the neighborhood that are for rent at .85 sq ft but they haven’t rented being on the market for 4 weeks or so. This is DFW TX btw.

Hi all. I close on my my first SFH investment for $235k on Friday. I put 20% down and my PMI will be $1635. I have a long term renter lined up in a guy that has worked for me for several years. I’ve seen how well he takes care of his stuff, so I feel pretty good about it. He’s a great employee. I’ve been a GC who specializes in water damage restoration and reconstruction for 22 years. Therefore I have connections for if/when things go wrong. I’m charging my employee $1500 a month, which puts me slightly in the red. But if he stays at least 10 years, I see that as a gain. My question is, on a 30 year loan, 20% down, do y’all try to make any positive cash flow? Or is it more about just having the renter pay off the property for you? I make a good living and have a pretty good chunk of change in the stock market for retirement, but I am still interested in buying more rentals to diversify my portfolio. Not for positive cash flow, but to have assets in 15-20 years to sell off for retirement money. Am I on the right track?