All Forum Posts by: Bill B.

@Fausto Carosella

Not 100% Fausto.  After 2 years renting and 5 years primary. 5/7ths as a percent (a little over 71%) would be tax free up to $250k for singles $500k for married people. The other portion would be taxed as capital gains. 

I BELIEVE you would still owe 100% of the depreciation recapture at 25%. 

I don’t think I would go forward with that exchange UNLESS you would do it even if the exchange is disallowed. 

I can’t think of a bigger red flag to its than your parents. It might work out great, it might require thousands be spent with a lawyer and/or cpa and work out great or it may require thousands and then be disallowed. 

If you’re truly doing it to help them out. Be willing to pay the tax bill if the IRS comes down on your. Just remember you’re delaying taxes. If you simply helped them out until they passed you’d avoid all taxes. 

You could also contact MH park owners. They almost 100% agree that they hate park owned homes. You’re almost doing them a favor if you give them a fair offer on all their park owned homes. 

@Nick Kingham

Hey Nick,

LMK if you want to get together and talk real estate some time, especially Las Vegas real estate. Almost all my properties are what you’re talking about $250k (give or take $20k) properties that bring in $1150-$1350 in rent. I might even have a property or two I’m looking to exchange i could sell to you with a few years of rental and expenses history. 

I have a dozen properties in Vegas. None of them are on section 8 only because I’ve found a plethora of tenants without. In almost 20 years my longest vacany was 2 weeks. The average is about a week. And with houses they tend to stay years. (About 3 years average for me.) 

You can find properties for rent on Zillow hotpad mls and so on. We do pay a $300 referral fee to any realtors that being us a renter. 

Why not find another insurance company now? If they aren’t going to cover you while you’re vacant will you switch every time someone moves out? Your insurance agent/broker should at least have options. 

Allstate & State Farm definitely do. I actually had never heard of someone that didn’t. Can you name your current insurance company  so I make sure not to use them accidentally in the future?

The taxes are the same. 

You don’t need an llc.

The big difference is much better loans available for 1-4 units. 

I pay 8% and $150 for a lease renewal, I thought that was bad. (And the reason I do a lot of 2 year leases.) 

Could you bring it up as a “Hey 1/2 a months rent for renewing a lease seems high, if you need to charge that much to cover your costs, maybe I could take care of that myself?” 

I mean if you’re truly going to send out a 1 page addendum that says the lease is extended for this period of time at this rate it should be $50. My renewals are basically that except I offer market rate minus $25/mo for a year year lease, market for 1 year and market plus $50/mo for mtm in renewals. 

I haven’t used them as my PM does them for me but rentprep does that. They have a podcast you can listen to and see if they strike a chord with you. 

@Account Closed

The description looks identical to googling infinite banking or private banking. 

I think this is popular in other countries that don’t offer fixed rate 30 year mortgages/ Americans don’t realize how rare those are in the world. Do you see how their interest rate has already gone up 1/2% in the last 6 months? Is there a cap? Can it go up another 5 or 10% over the years you’re trying to pay it off? I don’t think there could be a worse time in history to be locking in a floating rate loan  

I couldn’t find the total costs other than where it says like a primary mortgage there will be costs and your interest rate will be the 1 month labor plus “an option you choose from the rate chart” which didn’t seem to be available. With the 1 month labor already at 2.5% (ps. The libor goes away in 2021 because of their cheating and market manipulation, do they spell out what will replace it in less than 2 years? Or why they would still be marketing with it now?)

It says it acts like a credit card and it seems like that’s what they want. For you to carry a balance and pay them higher than market rates on a loan that you don’t need to pay back as fast as you should. With the origination costs and floating interest rate< how can it beat simply sending extra payments?