All Forum Posts by: Tommy Johnson

So I guess I misinterpreted a 1031 exchange.  I purchased a property Jan 2019, a few months ago.  I fixed it up and it sold this month, and is set to close May 2nd.  I contacted an exchange company and they told me that I could not do it unless I held onto the property for over a year?  They told me that they could do it for me, but if I was audited, I would have to pay back taxes.  I just wanted to double check with the people that do this.  This is the first time I have attempted a flip and I really don't want to pay that huge tax hit.  Any advice would be appreciated.

Thanks

Thanks everyone for your input!   

Hi, so I am in the process of rehabbing my current rental property in hopes of doing a 1031 exchange. As I am in the midst of the rehab I am realizing that it may be a better option to pull equity out and purchase a multifamily without selling. My mortgage and everything is under $900 and currently in this market (Sacramento, Ca) I can rent it out for $1700 (3 bed 2 bath SFH). I have quite a bit of equity in the property, over 200k but everything is really overheated in this market. So recently a home owner approached me and wants to sell a duplex that she owns for $325,000. It is a 1700 sq ft. property and each side is a 2 bed 1 bath. She currently has one tenant on Section 8 paying $950 a month, and she is in the process of evicting the other tenant so the other side would be clear, and I would be able to charge $1200 a month in this market at this time. If the owner puts the duplex up it will probably sell for more, but I am not sure if that is the correct approach in this market. I am becoming more confused as to what I should do, and I do not want to make a bad move and then limit myself in the future to buy another property if I eat up the equity in my first home, and then do not have a ton of equity in the multifamily. I need to make a decision soon, but I was just reaching out for some advice. Thanks for your time.

Hi, so I have a rental home in Sacramento Ca the Tahoe Park area.  I am in the process of refinancing my loan and taking some money out to fix the property up and sell.  I currently owe $125k on it and it was just appraised at $330k.  With that much equity I would really like to do a 1031 exchange and purchase a mutil family home or a small apartment complex to generate more cash flow.  I know this area is high, and also has low inventory and reading through the forums it seems as if I should wait to sell unless I have identified a property.  I really would like to get going and don't want to wait..(I have been waiting for years), but I feel that my current home will sell fairly quickly.  I don't want to panic and then force myself into something that I regret later. I feel like I am overthinking everything and then ultimately end up doing nothing. I appreciate any insight people may have.  Thanks in advance.

Thanks everyone for your words of encouragement. It took me a few days to post and put myself out there, but that is going to be part of my new narrative. I'm ready to pursue my dreams and surround myself with like minded individuals. It's not that my friends don't encourage me, but I work in the Social Service field where everyone works hard for little money. I look forward to starting this new journey and hopefully documenting my progress along the way. I am interested in buy and hold multi family real estate and generating passive income. I am currently in the process of pulling some money out of the equity of my current rental, I want to fix it up a bit (paint, flooring) putting it on the market by the end of this year and doing a 1031 exchange to delay those Taxes. The first real estate agent I talked to told me flat out don't even buy and wait until next year. He didn't even want to have a conversation after that. So what I did was contact another person, and I will keep going until I am successful. I am committed to changing my story. Thanks so much for everyone who replied to my initial post. Just receiving feedback really pumped me up! Take Care BP family!

Hi everyone, so I recently discovered BP and I have been addicted ever since. But let me go over my thoughts. I have been wanting to invest in real estate for 10 plus years now but I have not had the confidence to actually follow through. I actually bought a home in 2011 that I lived in. I got married in 2012 and have been renting out this 3/2 in the Sacramento Ca area since then. The tenants have been good but one day I received a call on Christmas Eve about the toilets backing up...Total sewer replacement for 6k 😢. Ouch. I owe 95k and the houses in the area are now going for 300k +....now is the time, I really want to do it. I want to do a 1031 and with that equity I should be able to get a multi family home. Today I am going to contact a real estate agent...but hold on let me read some more blogs, and listen to more podcasts. I need to be ready, I don't want to make a mistake. Each podcast is so informative, and I feel ready to finally change my life. But change is scary, I have been in the same job that I don't like for 18 years. Ok let's do this this time, I'm ready to do this!! Wait, I need to find a mentor, I have other stuff to do. Dammit I keep sabotaging myself. I'm going to write down some realistic goals, I can do this! I need to do this! I know others feel this way, I'm glad I can see it in the posts. Anyways so glad I found this community, I feel that with the support this time will truly be different.