All Forum Posts by: AP Horvath

Thanks @Dave Foster -- how long would it have to be leased for such that it legally changes status from primary residence to an investment property? Does he have to show a new (owned by him) primary residence? 

Thanks @Dave Foster and @Bill Exeter. I appreciate your thoughtful replies. 

A bit more background:

a) Yes, it is currently his primary residence. He's in his 80s. 

b) He is considering trying to convert it into a rental but as I mentioned, the house has a *ton* of deferred maintenance (inside and out), meaning that it is extremely unlikely he could actually rent it to a 3rd party (which is what he thinks he could do). 

c) Also, he's "house-rich" but "cash-poor". 

Any tactical suggestions on what he and I might do to minimize or obviate the tax burden vis-a-vis a 1031? We're open to creative ideas.

Thanks in advance.  

I should add -- this is known as the "California Claw-back". 

Hi there,

My elderly father owns a home in an affluent part of Northern California. He purchased it in 1982, so it has a low basis (and tons of deferred maintenance). He'd like to fully retire and sell it and then to move to Texas. He'd like to buy a condo (to live in) + some commercial or multifamily with the proceeds.

He says that California real estate taxes will take a massive chunk out of his gains and won't recognize such a transaction (SFH to condo+commercial) as a valid 1031 exchange.

Anyone familiar with doing 1031 exchanges across states and types of real estate? 

I am doing the math on an investment into a developing office-condo project. They have started selling units but haven't broken ground yet. 

I asked the listing broker about taxes and they replied:

"Since they will be deeded as condos you will pay the taxes as assessed by the county"

Unless I am misunderstanding something, they are asking me to consider purchasing without knowing what my tax bill will be. Is that right? That doesn't seem to make sense.

Thoughts?

Austin has great potential long-term, no doubt -- but currently, it seems over-heated and deals seem incredibly hard to come by. 

@Bryan Noth -- what sort of cap rates are you seeing in Austin multifamily? 

Anyone know what's considered a good cap rate for a vacation rental (that our family would use too)? 

Rental rates, I think, are fairly easy to estimate -- but vacancies seem harder. 

Your point is taken -- but I suppose that all depends on if that job is well-compensated and how much time you have to put in it.

Anyone have significant experience buying/operating/selling car-washes?

The upsides seem pretty clear -- what are the dangers and downsides specific to car-washes? Also, any good books on car-washes?