All Forum Posts by: Dick Green

Happens all the time. As long as both the buyer and seller is ok with it, it's usually not a problem. As far as capital gains.... Since 1997, up to $250,000, ($500,000 for married couples) on the sale of a home is exempt from taxation if you meet the following criteria:

1. You have lived in the home as your principal residence for at least 2 out of the last 5 years.

2. The seller has not sold or exchanged another home during the 2 years preceding this sale.

Note: The property you're selling must be your principal residence. That means you have lived in it for at least 2 out of the last 5 years. This tax break doesn't apply to a property that you've owned for investment purposes, such as a piece of rental property. In that case, the usual capital gains rules apply.

Still I recommend checking with a tax professional.

Hey Bro,

Welcome to the group! I didn't read your entire post but from what I gathered sounds like you have made some wise real estate decisions in the past. Seems to me that the rate of appreciation on your current property qualifies it to be defined as a money tree. If you have a money tree or a cow thats yielding golden milk....don't cut down the tree or sell the cow simply let someone else make the payments on it. If I were you, I would consider renting your current property or at least checking into the rental market for your area. Renting your current dwelling would qualify you for more lenient financing loan to values and terms as a non-owner occupant. Make sure you have a home warranty in place at the time of rental to cover repairs then, let someone else pay that mortgage for you while you simply let the equity continue to build up and milk the cow every so often.

Use your initial re-fi to purchase closer to your current income. Arrange for the new tenant's lease to commence at the same time of your closing so as to not affect you debt to income ratio. Just because the owner of your proposed new purchase doesn't want to wait til you remedy your current property, remember that a qualified buyer is the most important ingredient to any transaction. I'm sure that your city is full of houses.

It's never quite as bleak as it looks if you own property. Sounds like you're in a good position to profit.

Hey Frank,

Welcome fellow Houstonian,

Sounds like you're gonna enjoy this forum as well as be a great addition. My sayin is "I wasn't born here, just got here as soon as I could". Likewise I agree that the Houston Real Estate Market is very efficient with tremendous values accross the board. If one is purchasing near the median price there is generally +- 7% on the table before the transaction begins. I spend everyday talking to individuals who needed to sell yesterday and am amazed at how many great deals are available.

Let's work a deal sometime!

The unexpected, Always expect it.

I tell my clients to work their way up to a full re-hab. If you are wondering how long it's gonna take, I suspect it may be your first project. I would recommend that you start with a project needing only carpet and paint. With one exception.........Unless you are buying the property so low that you can re-sell it at a profit with out lifting a hammer. Other than that scenario, I would start with the simple jobs first.

Good Luck

You're welcome!

We have several neighborhoods in the Houston area that are being re-vitalized. Since you say that half of the township has been renovated, I would be alittle more cautious. I'm not sure about your area.....but in the Houston area, residents of an area experiencing regrowth tend to try and sell their older properties at the going rate of new construction. Working with a good appraiser will usually keep you safe.

May be a profit waiting to happen it the numbers work. Do a cost approach analysis to determine your margin. Is there someone who has done that already and how did they do? Check out the current sales in the area for that size of a dwelling. An appraiser will base his/her opinion on the sale of properties in the area, comparible to the subject property within the last 6 to 9 months. Also how long are they staying on the market?

Good luck

I would get more estimates and be inclined to estimate high. Also, I generally avoid doing business with friends and family (with a very few exceptions)

Good luck!

We have a saying in the sales arena. It states that problems and confusing situations are usually opportunities to make a profit.

Welcome to the group. I know you will enjoy the various topics. Looking forward to networking with you.

It depends on the entire context. It depends on your specific long range and short range goals. In my opinion, given the right circumstances there's nothing wrong with an interest only loan. For example let's say I'm purchasing a fixer-upper for $110,000 that has a repaired value of $170,000. If my goal is to sell the same property within the year of completion, there's nothing wrong with a 40 year amortization schedule on a one or two year fixed rate interest only loan with no pre-payment penalty. I wouldn't have a problem with any product other that negative amortization that keeps my payments low. And depending on the down payment, monthly payments and the profit margin in the transaction, I might even consider negative amortization.