All Forum Posts by: Bill B.

@Daria B. it sounds like you were the seller, you have the credit, and you did a 1031. If that’s correct, here’s my non-expert opinion. 

You lowered the amount you had/have to buy with your exchange. (You only have to buy as much as you net from the sale, this lowered your n.) 

You reduced the amount of untaxed capital gains you’re carrying forward but you didn’t create an expense or a deduction today. I BELIEVE this credit would be treated just like covering buyer’s closing costs. 

Certainly talk to your CPA or your 1031 QI, both of which should have had a 10 second explanation at the tip of their tongue. But that’s how I would expect it to play out. 

I’m GUESSING it’s a toilet or underground leak, call it 90%. 

I don’t know how easy it would be for you to contact every resident and ask that nobody use any water at a certain time for 10 minutes. Then check to see if the water meter keeps spinning. USUALLY a water department can tell you how long the water meter has been running constantly. 

There’s almost zero chance someone is doing it on purpose unless they are running the water even while trying to sleep. If the “all water off for 10 minutes” plan is unworkable. You could have someone walk each unit and turn off the water supply to each toilet for 5-10 minutes and see if any tanks runs dry. (Easiest to check and cheapest to fix. But won’t find underwater leak. That takes the nobody uses water plan.)

If he doesn’t own the trailer he has nothing to say about selling it or who owns it. But…he can make the buyer regret it if he doesn’t plan to move it. Again, land rent could be anything. I’d honestly look for a trailer reseller or someone with their own land. 

Let her sell it as she won’t have a taxable gain which you will have if she gives it to you and you sell. As you mentioned, it’s not really an asset. Imagine tomorrow the land owner doesn’t really want the trailer there any more because the land is worth more without it. So they double or triple the rent, then what’s e trailer worth? (Assuming it costs $5-10k to move and it’s worth less than that?)

You’ll sign a piece of paper at closing saying you plan to live there ], usually within 30-60 days. That’s why you get a discounted interest rate and a lower downpayment, because owne occupant properties are low risk. 

Can you either rent out your current property if there’s been little/no appreciation, or sell it tax free? (Which you could also then do with your new purchase in 2 years. At least for the 1/2 or 1/3rd you lived in.) The tax savings could be larger than the regular income. 

They are a bad deal for homeowners and a terrible deal for rentals. 

Their entire business plan is wait a few days to come out, charge  deductible, go back to the office to order a part or two that will come in a day or two. Come back out and see if that part fixes it or come back in a couple more days. Never replace anything that can be patched together. 

While you may be willing to live without heat/ac or hot water for a week. It’s usually not allowed for rentals. Simply put that money in your pocket and save it up for repairs. 

The ONLY reasonable deals are:

Appliances when purchased if you have a retailer that offers unlimited repairs/replacement for 5 years for 10% of price. (Like RC Wiley) 

The money losing warranties offered by utility companies. (The power company in MN will offer you a chance to buy the warranty after the furnace/ac is broken and come back the next day to fix for free.)

Is there no one else of your religion in the area looking for housing?

Contact local AA or Alcohol rehab centers?

1) don’t forget, in LA you will have a VERY hard time raising rents more than 9% per year. So it could take a decade to get to todays market rent. 

2) it’s almost impossible if not impossible to non-renew a tenant, especially if you’re not an owner occupant. 

3) As a seller, even if I could remove paying tenants I never would without a non-refundable payment from a potential buyer that covers all vacancies for 6 months if they fail to complete the purchase. 

4) You MIGHT say as a buyer that’s worth it. But it also means you have virtually zero bargaining power as the seller can reuse any and all repairs and just keep your 6 months of rent as a bonus. 

Lastly. You think it sucks to be a landlord in CA? Double or triple that suckage for anything less than C+/B-   If you wouldn’t be willing to walk there from a couple blocks away at 10PM, that’s a hard pass in any market. 

Your choice:

1) Because of your failure to prove you have obtained renters insurance upon moving in this is your 5-7-9 (how ever many days required in your market) notice to cure the problem or leave the premises at the end of the month. 
. 
2) Because you have failed to provide prof of renters insurance upon move in a policy will be provided for you starting March 1st through insurance company X at a cost of $xxx.xx. A copy of the policy will be provided to you. This cost will be due March 1st and deducted from any payments before any rent is applied. This may result in late fees and eventual eviction if not cured within the legally provided time. 

Shouldn’t be a gain, but your cost basis will remain the same if only insurance money is spent rebuilding it.