All Forum Posts by: Alex Boulger

@Alexi Galica-Cohen

Ok well since it looks like we are unlikely to qualify for the 2 out of 5 rule, since selling in September is impossible, do you have any recommendations that would help reduce the tax burden for the sale of the property? Something that maybe we can do to offset the amount.

We don’t make any active income in the US, only passive. So our income bracket is already very low. But with a potential 200k profit from the sale, what is the potential taxes we’d owe? Since TN has no state income taxes, it would only be Federal.

@Drago Stanimirovic

I’m not trying to purchase another property, I’m trying to use the profits from the sale to pay the remaining balance of my loan off for my second investment property. I guess what I do with the money is not relevant in this case. I thought maybe there is something similar to an exchange for this.

I’m still not entirely sure if I am too late to qualify for the 2 out of 5 rule because I would only be able to sell by the end of the year realistically, not September when I moved. So I’m not sure if I’d even get this tax break. I may have to look for other alternatives. Any suggestions would be greatly appreciated!

@Alexi Galica-Cohen

Thank you for your advice! I know we are cutting it very close on the 2 out of 5 year. It’s basically impossible for us to sell it before the end of September (5 days), but do you know if we could still qualify if we sell it before December 2024 since our permanent residence for our 2021 tax returns was the address in question. I’m not trying to break the rules! I’m just trying to figure out what is allowed!

Hello everyone,

I own two properties in Tennessee. The first property is a condo, and my wife and I own 90% of it, and my brother-in-law owns 10%. The condo was purchased March 2019. We lived there until September 2021. In September 2021, my wife and I moved overseas and, we are still living abroad. My brother-in-law has remained living in the condo the entire time (not sure if this is important). I need to know if we would receive a tax break if we sold the condo before the end of this year. Our intention would be to roll the money from that sale directly into our second-home property. I recently discovered the 2 out of 5 year rule where you must live in the property for two out of the last five years in order to get a tax break. I would like to speak to a tax professional regarding this situation in Tennessee. Our primary address according to our 2021 tax return is the property in question (even though we technically moved in September 2021). Has anyone done this before?

Thanks!

-Alex

@Julie McCoy Inreally appreciate your help! I’m fortunate to be able to start this early in my life. I know I’ll have questions developing my plan, so I will for sure reach out! Thanks again!

-Alex B

@Julie McCoy Thank you for the advice! I really think with your guys encouragement I am seriously considering shifting my direction to pigeon forge area. @Parker Borofsky please reach out to me, I’d love to chat about some options!

Thank you!

-Alex B

@Lucas Carl I don't know why I never considered pigeon forge... but my condo is under a conventional mortgage loan, so I'm not currently using an FHA loan, but I wouldn't have the intent to move there. I haven't reached out to any lenders about a second home loan, but I assumed it would have to be 20% down. I will take your advice and call up my lender to see his options.

Thank you for the tips! Any further advice or references would be appreciated.

-Alex B

Hi everyone! I'm newer to the real estate game, but very anxious to put in more work to earn more business than I have. Currently I own a condo that I used as a live in flip and have a renter in my guest room paying the mortgage. This plan worked out better than I could have anticipated and I feel like I caught the real estate bug. My only problem is that I don't have much capital remaining after this deal. I'm only 24 and trying to build up my investment portfolio leveraging the real estate industry. 

I had an idea that I want to get some opinions on. I currently live in Knoxville, but have been doing some research on airbnb. It seems that Nashville, (only 2.5 hours from me) is one of the top airbnb performers. I have a couple friends in Nashville right now looking to buy a property. I had the idea to try and buy a duplex with one of them so I could maybe qualify for an FHA loan. I want to know that if they are on the title with me and living in one side of the duplex, can I qualify for an FHA loan? This way I can use the other side as an airbnb or if that doesn't work out, plan b use as a long term rental. I feel that this may be a good way for me to score a good deal on a property without putting down too much capital. Ideally I'd move to Nashville, but I just landed an amazing engineering job here in Knoxville that pays really well and I do not want to give that up.

Please comment any advice or opinions you have on this idea. This industry has brought a ton of hope for me and I have the time to put into this, but right now I'm just hunting for more experience. 

Thank you all for your time,

Alex B