All Forum Posts by: Chris Mills

There was a time in DC where the numbers worked naturally. Since the market shifted, I've moved to other markets around the country instead of fighting an uphill battle.

@Thu Cao I would suggest researching TOPA if you haven't already before buying in DC. Not a deal killer, as it's gotten significantly better in the last 5 years, but you should still know what you're getting into.

You can ask another QI for a second opinion, but I believe that is correct based on my understanding. 

I agree that a DST is a great backup to your replacement property in a 1031 exchange, but...

1. It's a passive option, which may or may not fit your short-term goals for this next investment.

2. You have to be an accredited investor.

I'd consult my attorney on how you're legal options would play out in real life. They're bound by contract, but you need to be able to close on time to satisfy your 1031. That's where your backup comes in. You said house, which makes me picture a SFH. They don't sit too long on the market these days. If that's what you're hunting you'll need to be nimble. Best of luck.

@Tracy R. I agree with the attorney. To try to get the property before it goes to the tax sale would be a huge lift without any guarantees that you'll actually land it in the end. Waiting for the tax sale, you still may get outbid, but at lease you didn't lose any time or money in the meantime. I'd also stay in touch with the daughter just in case something develops on that end.

Not worth picking a fight with DCHA. I'd let her go and be grateful the place is in good shape. If you want to look into the security deposit, they both should have copies of her paperwork which states who pays the security deposit. It's been a few years since I've gone through that process with them, but it was on there then.

Let me know if I can be of any more help.

That's correct @Ryan Copeland. Your heirs get a step up in basis, meaning their tax basis becomes whatever the property is worth when you pass (under current tax laws). They're essentially starting with a clean slate. Until then, you can "swap till you drop."

@Zee Ayezain I've never had issues, DCHA or otherwise, with not having a disposal. I double checked with my guy in DC and he says it's not against code.

@Tania Lopez If you and your husband are favoring selling and doing the 1031 route, you should start talking to a Qualified Intermediary and keep them in the loop as the process progresses. You could potentially do a reverse exchange (where you find and buy the replacement property first), which is not too much more complicated than a traditional 1031, and a good QI can hold your hand through the process. 

I agree that DSTs are also good potions if you're looking to go the passive income route and/or diversify. These are available to accredited investors. There are debt free options, as well as some around 52-54% debt, and both are open to you since your condo is mortgage free. There are advantages to both. You're in a really good situation.

@Ellen Holter If you're uncomfortable, going the referral route may be the best way to go either way. You can offer to take 25% on the commission split, and not only do you get to collect on your home purchase, but you can learn and ask all the questions you want along the way. If you choose a colleague you trust, and is willing to hold your hand through the transaction, it can be a great learning experience for you without risking looking inexperienced in from of clients (because you are the client). This scenario could be a real blessing for you.