All Forum Posts by: Dennis Tierney

I think the economist's premise that the C renter is able to move up misses the fact that the C renter is the one most likely to be unemployed by this shut down in the economy. It also misses the fact that the property taxes and insurance landlords pay have significantly risen the last five years so they have less margin to lower rents and still stay afloat.

@Jay Hinrichs It is definitely a trend in many areas of the country. I'm in Omaha and we recently had a rental unit registration and inspection program passed by the city council and the organizations backing it and lobbying the council members have clearly stated to their members this is but a first step and their eventual goal is rent control. It's a very slippery slope landlords are on.

I see Devil's Lake is a town of about 7,100 so your options for 3rd party management are going to be limited. It all depends on your level of comfort and time available to do the management. According to the management cos. I use they say no one should professionally manage over 100 units. But that's people who do that as their day job. You have to ask how much time you have outside of your day job to take on the management duties.

I forgot to mention the first cash we'll roll out will be covered by cost seg from 2 properties we bought outside of the IRA in January and February this year.

@Ashish Acharya That is correct I am now classified as active real estate investor. In fact I didn't pay any taxes in 2018 because of the losses and will carry forward losses to offset 2019. I am meeting with the CPA next month to map out our plan to roll the properties out of the SDIRA by selling inside the IRA to avoid capital gains then rolling the cash out of the IRA, sheltering the cash using cost seg, buying another property outside of the IRA with that cash and using cost seg on that property and repeating the process till all of the $ is out of the IRA.

@Nicholas Aiola I retired from my former job in 7/17 so have been full time real estate since then. We did a cost seg on the 2018 taxes for a purchase made 1/18 and it saved me from paying capital gains on a failed 1031. I am classified as a real estate professional on the taxes so will be able to take full advantage on all of the losses generated by the cost seg. I have been tax planning with my CPA but also wanted your opinion on the strategy.

@Nicholas Aiola My thought was to sell an apartment inside the IRA, so avoiding the significant capital gain , then moving money out of the IRA using the cost seg and with taat money buying another apartment that we could do cost seg on again, allowing us to move more out of the IRA in kind of a "virtuous circle". We could repeat the process until all of the money was moved out of the IRA and then we have apartments owned outside of the IRA for cash flow and no worries about RMDs.

@Nicholas Aiola Thanks in advance for your thoughts. I have several apartments in a SDIRA and will be bumping into RMDs in about 3 years. One strategy I thought of was to use the losses generated from cost segregation depreciation to offset the income tax I would incur if I were to roll an apartment out of the IRA. I am an active, rather than passive investor.

Dennis

We came up with a couple of uses for accelerated depreciation by cost segregation. We had a failed attempt at 1031 exchange last year but were able to eventually buy an apartment building so the losses generated by the cost seg. study will cover the capital gains we would have had to pay. We have several apartments in a self directed IRA and in a couple of yrs. will be bumping into mandatory RMDs. I was thinking of trying to roll one or more out of the IRA and using the losses from cost seg. to cover the taxes doing the roll out would incur. Anybody had experience doing that?

Yes. His Co. currently manages about 109 multifamily units for me and one house. He manages a fair amount of houses for other clients. I plan on switching other property to him.