All Forum Posts by: Alan Grobmeier

@Chukwudi Motanya, if it is an up and coming area where I know I can increase rents 3-5%+ every year, yes.  

Otherwise, 'maybe'.  I'd consider selling via lease/option.  That way I don't have to mess with maintenance & still get some money per month & cash reserves in case it went south.  

@Harsh Dangaria, my cpa has told me to never refi to an above acquisition price.  In your case that would be 100k.

There are interest tracing rules for your interest to be deductible.  Google 2019 interest tracing rules.  Here’s a link to one of many articles:

http://www.marcumllp.com/insig...

https://www.taxcpe.com/blogs/n...

@Brandon Hicks, eviction pales in comparison vs a felony?  ;-). No money to go after.  :-(

@Victoria Barenz, I have quake insurance on a property in San Diego.  It’s inexpensive, under 400 a year.  San Diego does not have quakes that do damage like La or Sf, but you never know.  If you can get it, I’d do it.

@Shelly H., my advice is to have plenty of reserves.  If it’s an appreciating area, rents should increase 3-5%+ annually.  In 5 years you will be ok as rents could be 20% higher than today.  Just figure out how you bridge to that time.  ;-)

@Dmitriy Fomichenko, thank you for your input.  I can probably find some other articles as well, but the MORE that I read your response, the more I think this could come under scrutiny.

I, obviously, have not done this type of partnership, but I do find the 'possibilities' intriguing.

I guess I need to come up with a different 'model'.  Maybe do a 401k>Roth conversion, non-disqualified person as a partner, etc.  

Thx!

@Dmitriy Fomichenko, @Bernard Reisz, below are a couple of links and articles, written by IRA custodians, on how to partner with your IRA with ANYONE. Are you sure these partnerships are considered 'self dealing'?

http://www.midatlanticira.com/...

https://www.trustetc.com/real-...

https://www.theentrustgroup.co...

@Dylan Legg, this is a victim mentality.  You gave them time to move.  They could have moved elsewhere weeks or months ago & had Thanksgiving in their new place.  They are being 'uprooted' at Thanksgiving because that is what THEY chose.  Period.

I hope they paid rent for the months which they occupied the property.

Otherwise, I wouldn't worry about it after they are gone.  I am making the assumption that they are gone now?

@Douglas Gratz, my cpa has recommended that I never get a loan that is larger than the acquisition/basis cost.  In the past, I guess this used to be ‘ok’.  Now, I guess, it is not as ok.  Obviously brrrr would be different.  But that’s not what I’m doing, so it’s not applicable.

Also, something to consider, is interest tracing if/when you do a cashout refi.  Again, not something that was considered in the past.  But often violated these days.

https://www.taxcpe.com/blogs/n...

@Brent Cline.  I am a San Diego native, grew up in pt loma & La Mesa.  I’m now a ‘refugee’.  Keep the condo & rent it out.  Rents are skyrocketing, even with ‘rent control’.  Which won’t apply to you.  In 3-5 years you could be +$500 a month cashflow.  In 10 years you could be +$1000 a month.  And, as you know, they are not making more land in Pt Loma.

Your Midwest cashflow won’t appreciate like this townhouse.

[Solicitation Removed by Moderators]

PS.  You can have more than 1 va loan.  I did have 2 va loans at the same time for a few years.