All Forum Posts by: Dan Delcorio

Curious if there is a local investors group to network/learn with?

@David M. Thank you sir, much appreciated.

@David M. Correct on both fronts, I just call it a hack cause original intention was to live there when renovating. We had always planned on holding it for two years so “long term flip” has been another way I describe it to people.

And yes after closing costs, which I didn’t know I could consider towards profit/loss, will probably end up at a capital loss.

@Michael Plaks thank you for all the input. You are correct, and unknowing to me, reducing the taxes should not be a problem as you are right we’ll be lucky to break even.

Short sighted viewing on my part not thinking about writhing of expenses on the renovation for the second home/flip.

@Basit Siddiqi interesting. Any thoughts on how/where to look further into that scenario?

@David M. That may be something I’m not considering, the cost for us to renovate the house hack. We’ll be lucky to break even. I’ve only been thinking of it as, I bought the house at $225k hopefully sell at least $300k and I’d have to pay tax on that margin. We’ve put $75K into it.

Some where along the lines in the tax filing will I be able to write off those expenses?

Through the sale of one of the home I’ll roll some of those funds into another home/investment purchase for me to live in.

@Michael Plaks I tried to stay vague because the details of the whole situation are extensive and complicated.

PRIMARY HOME

-purchased 2014. I’ve lived in this residence since along with sister and her children. (Supported her until 2018 when she was able to start paying the house note)

HOUSE HACK HOME

-purchased December 2018. Was intended to move into and slowly renovate while living there. My partner, who is not on deed, and I decided to do a full gut renovation so I never moved in. Of course we have ran into every problem imaginable (1959 home) with both home and contractors. Just now wrapping up the renovation and preparing to move in. My partner and I are partying ways and she is wanting to sell by June next year. I purchased house and paid note, she funded most of the renovation.

As I mentioned above HELOC is out of reach at the current moment because of lack of sufficient debt to income Employment.

So with all that considered I foresee being in a position of need to sell both homes after the first of the year in order to continue investing in Realestate.

Thanks for reading!

@Alex Olson unfortunately not in a position to apply for HELOC as I don't have sufficient debt to income ratio employment, I work in the bar/restaurant industry. Currently looking to make a change.

I currently have a small HELOC ($13k) that I took out 3 years ago. The numbers are much better now and could get upwards of $50k HELOC. This would be an ideal situation if I can get the W2 employment going.

@Cody Barna I’m aware of some of the basics especially on the personal home, it’s the second sale I’m trying to figure out. Will that be treated as short term capital gain and taxed that way?

It was my partner and I’s plan to hold the house hack for two years to avoid capital gain there but now I may need to sell the personal sooner that planned, to get the equity out to reinvest in Realestate.

I have a personal and secondary home (house hack with a partner)

Personal home I’ve been in for 6 years, house hack home 2 years this December.

I may end up selling both after the first of the year.

What would the tax treatment be on what ever home I sell later?

I have much more equity in the personal home then I do the house hack home.