All Forum Posts by: Daryl Demz

@Dave Foster, that’s a really great info.

I actually asked a CPA earlier this year (paid him really well too for his time) about which option is the best route to take but I did not found this answer from him.

@Dave Foster, I really appreciate your brief explanation. Thank you so much!

@Dave Peirce, I looked into section 121 exclusion already, but since I purchased it when I was single and only stayed their as married for 6 months, I would still end up paying some capital gain taxes.

For an informed Investor, the answer is clearly NO.

But if you are looking to profit for a turnkey business, all you have to do is follow the Flipping Model.

Buy a property with all in cost at 70%-75% of ARV.

Since you will be putting a tenant, why not continue managing property/tenant?

Then you will get paid another 8-10% from monthly rent.

Based on your numbers, the deal look solid.

By the way, did you check what covers the HoA fees?

Aside from Landscape/Snow removal, & etc... Does is cover water, sewer, & garbage too?

Those maybe additional cost to you...

Depending on how old the property & what type of repairs done to it, you may need to set aside percentage of the monthly income for future repairs & capital expenditures.

Also, How's the neighborhood on this properly?

Walk Scores? Transportation? Crime rates? Environmental issues? School Ratings? and Etc...

Situation;

I have a rental property bought in March of 2012 for the amount of $220K.

(Initially used as Primary Residence until Oct of 2017)

Before moving out, In January of 2017, I did a cash-out refinance, and the new loan balance is about $315K.

(The cash out money I used to by another house)

The current property value is about $560K-$590K.

Now, I'm planning to sell my rental and do a 1031 Exchange to deferred  paying taxes.

Problem/Question;

(Here's the part I'm not sure how it works)

Since my base price is $220K, which means I have approximately $315K in gains after paying fees/commissions.

But the existing loan is $310K, which means in closing I will clear approximately $220K.

There is a difference of $95K compared to my true capital gains.

Then, do I have to come up with another 95K to add to my $220K if I have to do a 1031 exchange?

 How will this work? How should I proceed with this?

Is 1031 Exchange even an option or should I just pay capital gains?

Thank you all for responding...

Thanks for sharing this Kent!

Glad to meet all that attended this meet up event...

Looking forward to see you all again on the future meet ups...

Thanks to  Mike and Rosemarie for starting & hosting this event for us, BAYOSI!

Let me know when will be the next meep up.

Thanks!

No problem, thank you for the Heads Up...

Will be there again Bud!