All Forum Posts by: Aaron Smith

@Bill Exeter

@Dave Foster

@Bill Exeter

@Dave Foster

I have a similar situation to Michaels. I bought a fourplex using a 1031 exchange and am now in the process of condo converting to 4 condos. Since the area is only getting better, I do intend to hold the units and rent them out.

Judging from the answers above, I would assume I would have to do a 1031 exchange for each condo unit, should I sell them down the line. My question is what happens to the rule that the new property must be higher in value than the relinquished property? Would that value just be divided by 4? I'm assuming the deferred taxes from the previous property would also be divided by 4 and be deferred again at the sale of a condo unit. Kind of tricky, thanks for your input!

I recommend looking at irem.com for ARM certified people.

You can usually borrow money out of your 401k too.

If it's owner occupied, TD bank and PNC Bank offer a 90% LTV HELOC. For TD Bank you'd have to have the mortgage with them, but for the PNC heloc, the mortgage can be with a different bank. Wells Fargo also offers non-owner occupied renovation loans at 75% of the ARV. Those are the best loans I've found while calling around.

DC publishes a 'guide to eviction' which states all the valid reasons you can get a tenant out. There's always cash for keys also, but that might take a lot.

You could consider buying a rowhouse with an English basement as well. Rent out the basement and first floor and live on the 2nd floor. Or, if you have time during the day, Airbnb out the basement and 1st floor while living in the second. I would like to try this strategy at some point.

@Russell Brazil, Do you have any experience in using the "Landlord seeks to substantially rehabilitate rental unit" reason? Have you seen DC or tenants get stubborn with that?

I didn’t use this one because I was told DC may not allow a condo conversion if they believe the tenants were treated unfairly/poorly. 

However, for extra incentive, I did offer cash for keys in exchange for them signing the vacancy agreements on top of the rent control exemption. 

@Russell Brazil

So, did they actually get the exemption and the tenants fought back against the exemption, or did DC not grant the exemption?

If the latter, I wonder what the other considerations are for DC.

I  inherited tenants for my property. DC approved a rent control exemption that I applied for. I sent the tenants the rent control exemption permit # when they asked about it, and they then accepted it and signed vacancy agreements.