All Forum Posts by: Bill B.

My GUESS would be yes, if you touched the plumbing. Your plumber/GC should/should have definitely know(n). 

If you didn’t touch the plumbing you MIGHT have a leg to stand on. 

It’s certainly going to be more expensive than if it was done right the first time but this can’t be a big deal in the scope of a full gut. A hole or two (check how many you need.) and some plastic pipe?

Not if insurance paid for it. Basis is what you paid for capex. I THINK you could probably just expense your deductible if insurance didn’t cover 100%. But ask your CPA/accountant because I don’t know. 

I was thinking what Dave Foster said in regards to you having troubles, especially with buying a syndication. I doubt they'd be interested if you're brining less than $500k. Another complication I didn't hear him bring up is the selling part. Hopefully you own your portion of the real estate in your own LLC or your own name. If you own part of an LLC that owns all the real estate, than only that LLC can do a 1031 for the entire amount. Although I'm pretty sure you can dissolve the LLC beforehand if you haven't sold yet.

Ps. You have to buy more with your 1031 than your portion is worth. The equity doesn't mean anything. Let's say you own 1/2 of the $700k property as a TIC and can do a 1031 easily. Then you have to buy a 1031 worth $350k or more (your portion of the sold property.) the fact that you only got $150k in "cash" means nothing. Except that you will be required to get a loan for $200k or put another $200k from your pocket in to the deal.

Ask for a discount for prepaying for an in house credit?

Try to buy “blocks of time” in advance?

Try to “buy” a discounted rate with a chunk of cash up front?

Agree to allow the firm’s “entry level” attorneys handle your cases or as allowed by law their clerks? (Assuming quality of service doesn’t decrease.)

No matter how you look at it, that is a ton of money. I guess really you’re not paying it, the owners are. It’s nice you’re trying to save them money, but it limits your upside. 

It 100% depends on your contract. I assume you used a realtor and I assume you used their state contract. This should be a 2 minute conversation with your realtor. 

Why wouldn't you go to court? The WORST result for you would be losing your EMD which is exactly what happens if you don't go to court. They won't make you buy the property.

See if their contract even allows court without mediation first. But need a new realtor or at a minimum to have their broker step in for them in this case. 

Pay it off and then buy a new primary and turn your current home in to a rental. Of if you’re currently renting. Buy a new primary and rent rooms to relatives/friends/co-workers. That way you need 1/2 to 1/3rd the downpayment. And you could buy a second home a year later and still need less cash. 

You’ve heard from several experts I respect so nothing I say below is any reason to believe otherwise. It’s simply a place to start your own research or to give to your attorney if you need to find out if it applies…

https://amihousebuyers.com/selling/disclosure/#:~:text=Key%2....

Do you have to disclose water damage when selling a house?

Yes. In Texas, the TREC Seller's Disclosure
form asks you if you are aware of any previous “Water Penetration” (Section 3) or “Previous Flooding” (Section 5). The TAR Seller's Disclosure form also asks about “Water Penetration,” but gets a bit more specific by asking about previous flooding issues by asking you to disclose “Previous Flooding into the Structures” and “Previous Flooding onto the Property.” Note that water penetration is not limited to flooding from rising water levels on the ground in a weather event. Water penetration can also include roof failures or pipe bursts that allow water to leak into or damage your home.

Either have the repaired area researched by your local expert and accept it. Or use it as a reason to bail if you don’t like it. Good luck. 

Ps. While landlords are often exempt from these disclosures. Texas specifics does NOT exempt landlords, according to this website. 

Offset today’s income with depreciation. Once you run out of depreciation or your income becomes too large. You do a 1031 to a new, larger property with even more depreciation. (Imagine the entire value of your property being just the 20-25% downpayment on a 4-5x larger property and the resulting depreciation.) Just like monopoly. Turning your little green houses in to large red hotels. (Apartment buildings/retail centers/farm land/ etc etc…)

That sucks. Especially if it was already a rental. You weren’t trying to convert an owner occupant to rental. 

Try listing it locally or selling to tenant?  Some rentals just aren’t worth the hassle to hold on to. (Of course every time I think that. The property works flawlessly for a year or two with zero repairs/calls/turnover.)

Get a friend/relative/co-worker to rent a room from you? A permanent fix rather than just a bandaid. 

If your problems were really caused by an unexpected ac failure (can’t believe your realtor didn’t get seller to throw in a home warranty.) and not lifestyle. Then the problem will slowly fix itself even if you do nothing. Just lay them off s quick a possible. You can also send payments to credit card whenever you have spare money. As its interest is actually calculated daily. (Unlike mortgages.)