All Forum Posts by: David Asche

@Logan Knight do you know when the next one is, would love to meet some Boise investors.

@Dave Foster thanks, that’s good to know. What if the current owner did the 1031 into a duplex and then sold to me under my opinion to buy. Would that pose a problem? What do you think?

@Don Spafford thanks! I did consider renting the house and looking for another property. My problem is that the market is so high here in Boise it’s hard to find something I can afford with the down payment from the equity. I would prefer to exchange so I can still have two units (one for me, one to rent) and only have one loan, vs two house loans. And I don’t want to do long distance land-lording for my first unit.

Is there a disadvantage with a 1031 I’m not seeing. Can I do it with a primary residence.

Hi, I have a unique situation and would appreciate some advice.

I have been renting a house in Idaho for the last two years with an option to buy house for 151k at anytime within the next three years.

My realtor thinks the house should sell for 230k.

My goal is to house hack with a duplex.

My questions are: 1. Can I somehow buy the house with no money down at 151k (I don’t have enough savings for down payment, closing costs, etc)

2. After buying it can I use equity to pay for a 1041 exchange into a duplex valued at 230k, thereby keeping my 151k morgage.

3. If not can I sell it with no capital gains tax because it was my primary residence for the last two years while renting (not owning). Then use the gains as a down payment on a duplex.

Appreciate any advice or ideas anyone may have.

@Michele Wax yeah that makes sense. But I thought my dad still has to pay tax on the potential gains because we’re family. If not capital gains then something like inheritance or estate tax. Not sure what it’s called.

Do you know anything about that.

@Michele Wax two years ago, House was 151k. Including 32k of cash down and closing costs. Now we can sell for 230k.

Our realtor estimates that after closing costs, Dad getting his cash back, paying off the loan and everything else we would be left with about 70k in gains.

@Michele Wax that seems to be the only way it will work. Just frustrated that we loose that much of the equity.

@Michele Wax I’m not sure what my dad has done tax wise, he told me he would talk to his lawyer for advice. We put rent on our taxes.

I know he would have capital gains if he sold it at market value now. I’m wondering if there’s a way to maybe sell to us with no gain (original price) and then we sell the house?

So over two years ago me and my wife decided to buy a house in Idaho. Found a house, made an offer but my credit didn’t show up so wasn’t able to get the lone in time when we needed it. My Dad stepped in and bought the house with a conventional loan so we wouldn’t miss out on the house. 

We have an agreement that within five years we would buy back the house from him for the original price or sell it and keep any capital. 

Well now our house has 70k in capital and we want to sell and invest that money in a new house. 

My question is, how does my dad sell the house and not have to pay the capital gains tax on the money that will be ours. 

Because I have paid all the bills for two years and sent my dad the “rent” that just covers the Morgage, can he put me on the title and then sell it as my primary residence somehow.