All Forum Posts by: Account Closed

Personally, I would pass - $312k is awfully pricey for a duplex in the Beltline area. Assuming you can get $1,400/side, the rents are still well less than 1% of the purchase price and it likely won't cash flow. Exit will be tough. 

$3,100/month.

Closing on a quad at the end of the month. Property located in in-demand area off Pleasant Hill. Need a reliable, responsive property manager. Recommendations appreciated.

You absolutely cannot hire a locksmith. You absolutely do have to go through the eviction process. Shortcutting the legal process without a written agreement with the occupant is a recipe for an ugly lawsuit.

There will be a couple week lag with the bank recording the deed under power to you. The property won't show up in your name until then. That doesn't preclude you from listing it, but it will raise major questions with any potential buyers. 

Based on how you've framed the question, you already know the answer. Heck no. 

I wouldn't spend the money on a lawyer. As others have indicated, you have no damages if the future lost rent is covered by the new tenant. Be glad it worked out and move on. This is not a case that remotely justifies litigation or a lawyer. Too many people learn that lesson after they are out several hundred (or thousand) dollars. 

The reference to capital gains may have been confusing. I am just referring to the exclusion for $250,000 ($500,000 for married couples) in gains on the sale of a property that was owner occupied for 2 of the past 5 years. IRC Section 121. I am not sure what the effect transferring title to LLC would have on that exclusion, which is a serious benefit.

https://www.law.cornell.edu/uscode/text/26/121

I would consider not deeding to the LLC and instead selling the property in two years to fit in the exception for avoiding capital gain tax on owner occupied property. I am not an accountant but you may want to look into whether the change in ownership to the LLC voids that option. The tax savings would likely outweigh any appreciation you'll see in the near future.

I am curious how one even gets this far upside down. Seems like you would have to try.