All Forum Posts by: Bob Willis

No - there is no way to avoid the tax with the scenario you describe. If you want to move back into the property for another year (thus making it your residence in two of the past five years, you can avoid the tax on the gain).The only way to defer the payment of taxes on the gain is a 1031 exchange. Unfortunately you will need to purchase another property to leverage the 1031. Your existing property does not qualify. This is not my area of expertise but I believe what I say to be accurate. 

I assume you are talking about a requirement to publish notice of the LLC formation? If so, requirements vary state by state, but from my experience legal notices need to be published in "legal" newspapers. The definition of a "legal" newspaper also varies state by state. Sometimes notices need to run x amount of weeks to be considered complete etc... This should be something you could find on the interweb. Sorry I can't give you more specifics. Good luck.

Nervousness after someone accepts your offer is natural. Questions like, "am I making the right decision" are part of the process. Your agent should guide you on the next steps to take and should facilitate much of this for you. The inspection should expose any deal breakers. Good luck.

What's the plan moving forward? How will the property be managed, exit strategy, etc.. Is it making money?

Hey - yeah I am curious about an update too. Has there been any large CapEx - how old is the place?

I list on Zillow, there are others, but I have had luck with Zillow.

I have owned STR for more than 6 years. No one will care if it is a Queen vs King sized mattress. You won't get more rentals, a higher rate, or better reviews. As long as the bed is comfortable and clean a Queen is fine. Good luck.

Can you split the difference, put a little more down and get a shorter term ARM?

I think market saturation is the culprit here more than the economy. Just the reality from my point of view in Phoenix. I've had STR here for six years. Three years ago when I bought my last STR in Phoenix my house was the only STR in the entire subdivision, now there are more than 10 (this is in a very small area). The current market is very flat. My rates are down about 50%/night right now. This is to keep occupancy at a modest rate. I will know more after the first of the year when the STR market really heats up in this part of the world. My expectation is next summer will find some very good deals for investors in the valley. I think a lot of people who bought STR in the past year or two here are going to bail. Just not enough meat on the bone with the current saturation... Then again, this is just my perception of the market here.

 If you do this, are the loan costs cheaper than getting a mortgage up front, thus cheaper access to cash if you wait the six months?