All Forum Posts by: Cory Carrigan

Thanks all for the replies.  

The property is a cabin that we have owned for almost 3 years.  It was a short term rental that no longer makes sense for how little income it brings in compared to an increase in fees and rules.  We were thinking of selling and buying another property closer to home. 

Our CPA is the one who is saying we would owe the higher ordinary tax rate rather than capital gains rate.  Only because we are agents and we bought the investment property with the intent of making money.  Wondering if I should talk to a few other CPA’s….

Does anyone know the tax implications when selling your own investment property when you are a real estate agent?  I always thought it was just long term capital gains but I was told recently that since my wife and I are real estate agents, we would be taxed at our normal income tax rate.  Thinking about doing a 1031 to avoid taxes.

Water/sewer varies greatly depending on the municipality.  Many towns have websites where you can find the rates online.

Evan Lowry, you would be ok with only the signed estoppel agreements?  Yes after closing I would need to start raising rent to get to market rates.

I don't believe the lender needs to count the rental income to make the math work it just sounded like that was their requirement.  I will have to confirm.  I know they do keep the loans in house.

I am looking at a 4 unit multi family property with no leases in the lehigh valley pa.  I am told the current owner operated on handshake agreements.  They are working on getting estoppel agreements filled out for all the tenants.  I will then want to see proof (bank statements) that the tenants have actually been paying rent.  What would you do in this situation?  I don't want the owner to sign all the tenants up for 1 year leases right before I buy the property as I did not vet the tenants myself.  The bank I am working with prefers to lend on an occupied building with leases.  I would prefer to buy an empty building vs a fully occupied building with 4 units who I may have to evict immediately if they aren't paying rent.  What should I do?  Have the current owner get everyone on month to month leases or have them evict everyone before closing, fix up the place and rent out to vetted tenants at market rates?  What would you do?

@Chris Engler Yea I saw the meetup and was thinking of going.  I actually went to one last year when they were at Keller Williams office off of 33 and freemansburg.  Have you gone to one since they moved to macungie.  I lived in Forks Township for years but just moved back to Nazareth.

@Jay Helms What is via RUBS?  The property is in Phillipsburg NJ so the taxes are a little higher than in PA.  

@Brian Adzadi Its in Phillipsburg so only 15 minutes from me.  I do manage it myself but I thought the proper way to calculate cash flow is to still count the 10% and have 100-200 cash flow per unit on top of that?

@Brian Adzadi @Account Closed  How do the expenses look?  Am I calculating everything correctly?

@David Ribardo  Thanks David.  Do you know how to find other members in your area?  I heard you need to upgrade to PRO to be able to search other zip codes but I thought it was free to see everyone in your area?