All Forum Posts by: Dave Currence

Thanks @Jerry Padilla!

Greetings BP'ers!  Ive already posted a very brief introduction couple months ago, but I have only posted a couple of times since.  

Over the last couple of months, I have spent a tremendous amount of time reading the forums, books, podcasts, etc. to try to form a plan for my situation. I have been in business for myself, in the restaurant biz, for the better part of the last 10 years...so I know what it takes to have to work every day at something. Currently, I am looking to shed my interest(s) in those businesses and transition to something new, REI.

We currently own and self-manage a condo in Manhattan, which is being rented out, so although limited, I am gaining some experience at being a landlord.

After a fair amount of thought and research, I believe that I will be best suited right now by committing myself to "rehab and sell" projects.  This is mostly because I will be able to cover the cost of these projects myself (in the right market), and I am happy having the "job" of an active project.  Eventually, I would like to have enough capital to put together multifamily buy and hold deals for more passive income, even if I was to continue to do rehabs.

So far, I have only really looked at markets up the Hudson, mostly Dutchess County.  I am totally open to other markets within a couple hours of NYC, however.  Jersey, PA, Connecticut, Hudson Valley, Long Island, etc. all would work for me if the deal was right.

I would be excited about the idea of partnering with someone who has experience in one of the markets within that range of NYC, but am willing to go solo if I can put together a good team in the right market.   I would like to start with a smaller capital project, just to get my feet wet...(under 100K?)

Specific assistance I could use right now would be an agent in the area(s) who have the willingness to work with a newbie, but also the know how to help find the right deals.  I would be happy to discuss partnership arrangements with this agent on a deal-to-deal basis.

I will continue to update this thread if it gets any traction, and I will be pushing myself to actually come up with a concrete plan to start.  In the meantime, if anyone has anything they'd like to offer, either advice, assistance, or if you want to talk about partnering up, please converse here or send me a PM.

Thanks Everyone!

Originally posted by @Dave Foster:

@Dave Currence I just saw your reply to Elizabeth and wanted to piggy back on one other opportunity you have.  Since your gain is likely to be over 500K and since it is an active rental investment property now and since you have lived in it for 2 out of the previous 5 years you could also with your CPAs blessing combine all.  Do a 1031 exchange for the entirety but hold out whatever it is you would like up to $500K and take that as boot in the exchange.  Maybe this is a 900K property with a 500K loan on it.  You could buy a property for 400K cash in the exchange and consider the remaining 500K as boot.  When you file your taxes you apply your sec 121 exclusion to the 500K in boot that would normally have been taxable.  So you end up with a new investment property free and clear of debt or you end up with tax free cash in your pocket and all remaining tax deferred into the new property.  Right now you have the advantage of a wonder confluence of situations.

 Wow, Dave. I would never have realized that combining the benefits was even an option. I guess I always assumed it was a "one way or another situation". Thank you very much for that.

I'll have to keep that ticking clock in mind too when we think about this.

Great information!

Thanks

Originally posted by @Wayne Brooks:

Sell now, or before Oct 2017, and you get the primary residence exclusion....Capital Gains Tax Free ($250k if single, $500k if married).  Better than tax Deferred 1031 later.

 Thanks, Wayne

we would be able to take a 500K deduction, as we are married, filing together.  The gains would very likely be greater than that, thus why I was originally interested in all the options available.

Thanks again for your reply!

Originally posted by @Elizabeth Colegrove:

How much money is the question? Unless you exceed capital gains that would be your best avenue. If you do exceed capital gains, most CPA's argue 1 year of renting your house out but again intention is important. 

I recently did a 1031 for family. It was very successful as we were able to turn 1 asset into 3, triple our income and leverage. So again it all depends. 

The 1031 has lots of rules but it can be awesome but so is the capital gains. Really more information is needed. 

Profit

Depreciation Took

Goals

If you want to discuss off line feel free to pm me! good luck :)

 Thank you, Elizabeth.  I realize that there are more details you (or anyone) would need, and I really appreciate your detailed answer with what I gave you.  I guess the most important piece would be the gains....it would, very likely be well over 500K, that is actually sort of what sparked my interest in getting more information about 1031.  Ultimately it is something that will be decided with our CPA's, but I would like to try and learn as many options as possible for when the day comes to sell this.

Certainly it would be most advantageous for us to put the gains, tax deferred or not, into an investment property(ies) so that is probably the route we would go after selling.

It's been great being able to ask questions like this, and get answers from people who have actually been there.

Thanks!

The scenario is this....Purchased a condo in Manhattan in 2006, it served as our primary residence until October 2014.

Since October 2014, we have been renting it out. 

Basic question is...at what point, if any, would this property become "eligible" for a 1031 exchange.  There should be some substantial gains on the unit, both from appreciation and improvements so if there are ways to defer CGT if we should sell, that would be great.

I'd love to hear from any specialists here on BP.

Thanks!!!

Nice stuff, Adam K. ! Thanks for taking the time to share this, and your experiences so far. It's especially valuable to those of us in NYC. Personally, I think you're opinions on the appreciation potentials in each of those neighborhoods is pretty spot on, but we also know that in NYC any of them could jump off at anytime.

Hello Everyone!

Since I stumbled on Bigger Pockets, i have been doing a lot of reading around the forums, and the blog as well as listening to the podcasts.  In the interest of not just being a lurker....I wanted to introduce myself.  

I am pretty new to all this, but have been interested in REI for a while now, and would like to transition my business focus into this arena. I have been in the restaurant/food business for most of the last 20 years, having been in business for myself the last 7 of those. I live in Manhattan with my wife and our two young children (2yrs and 3.5 months old, respectively). I have focused my preliminary searches within a few hours drive of NYC, almost exclusively only in NY State. I have begun looking on both sides of the Hudson, and at this point, I am just trying to find a market to focus in on while I try to fine tune my plan.

For now, I am looking with the intent to rehab and flip, either SF or 2-3 family (after occupancy). However, all aspects to REI are interesting to me at this point, and I envision a portfolio with a mix of different properties.

Aside from the excellent knowledge base here at BP, I am also looking forward to networking and connecting with everyone.  Being able to connect with those more experienced, and more successful, than me is very appealing to me and I hope that as I gain some experience I will be able to contribute more here.

Looking forward to sharing some deals here on BP,

Dave