All Forum Posts by: Account Closed

yes. thats the real question can you get more than 1300 cash flow by selling and 1031.

capital gains, depreciation,  then it will increase the  bases and assigned a new one? then re start depreciation clock for 27.5 years? thanks for your help

why would she not defer till she died and leave it in the trust?

I told her to play it safe with 400k loan at 4% and 800k apartments in nicer area B  or greater if they are out there?

any good cpa's or accountants thoughts? shouldn't she re start the depreciation with larger assets?

sorry i'm new. maybe i'm lost. due explain. it was my understanding that granny can deffer all taxes into new property as a down payment?

@Account Closed @David Faulkner I take it you two are not a believers in the 1031 exchange

so your saying keep the property and do not leverage it for better opportunity?  Even if she leverages 50% and bought a 800k property don't you think she could get better cash flow? isn't a 1031 standard practice for most investors to pyramid up? I have done 5 1031 exchanges this year for clients all increasing cash flow and net worth.... Please explain how more cash flow and her asset now being wort 1.6 million will cost her millions?

Ouch! everyone hates a Realtor! Luckily this is my grandmother and I have her best interest and will be doing this transaction for free. She never mortgaged it and purchased the property for 35k in 1972.  Bob Bowling This is a rental property so does not qualify for prop 60-90, does qualify for prop 13 and she pays 600.00 a year in property taxes so more like 5,000.00 increase yearly if she stayed in SD,CA. She has depreciated all 27.5 years! Why would she buy for cash flow in CA? just  one of my duplexes out of state brings in almost as much as her one single family worth 3x's as much? she gets 1850 a month rent  and has no mortgage. Using the 1031 she should be able to by an asset of 1.5 million or greater. My question would be what do you think she should exchange it for?

Hello BP!    I have a client that owns a rental home here in San Diego since the 70's she is ready to do a 1031 exchange and will have 400k after sell.  She is retirement age and doesn't want to deal with property managing herself any more.  She will need them managed.  My question to the community is what would you do if this was you and you had 400k to exchange into more cash flowing property or properties.  Should she jump into apartments at her age?  Should she buy cash? Use leverage? buy single family or mulit family?  What area should she buy? Thanks for the input.