All Forum Posts by: Enrique Villarreal

@Ashish Acharya

Thank you for this, I didn’t think this would be an option since I wasn’t selling the property, but I suppose am technically selling a portion of it.  
I was hoping to reserve the Sec 121 Exclusion after 3 years and sell after the home has appreciated a little more but I assume this wouldn’t be possible unless I pay taxes on my partners equity stake correct?

@Hamp Lee III

Thank you for the suggestion. I considered this strategy initially but I feel more comfortable with using a HELOC as revolving debt which would be paid down quickly. Since this would likely be paid through the renters payments, it could take a while to pay back. Additionally I might only have $80k available.

Quote from @Chris Seveney:

@Enrique Villarreal

This is a very complex issue and not something you should take advice from someone on BiggerPockets

Chris - I agree 100%
I’m doing a gut check here.  I don’t currently have a tax professional I work with which was one of the reasons I was asking for any suggestions, I’m quickly learning this is a must!

Thanks Chris

@Eliott Elias

My goal is to keep the house as a rental and the equity would be an investment in the property with all associated appreciation, costs, etc.

Does this clarify things a little?

All
I’m considering selling interest my primary residence to a partner in exchange for X% equity. I plan on moving out of the house at the same time and using the money as a down payment on my next primary.  Would this money count as taxable income?

I understand this might be a great question to ask a CPA also, does any one have any recommendations for someone in San Antonio?

One more thing!

I’d like to retain the option of selling the property in 3 years and avoid capital gains, then rolling the equity into new properties.  Would this strategy above complicate this option?

Thanks all!

Hey BP

I’m looking to move out of my primary residence which I’ve owned for nearly 10 years and have $190k equity ($380ish market value) and low low loan rate.  I don’t want to sell the property, but I’m still going to need a down payment for my next house we’re moving into.  My plan is to work with a local partner, sell a X% equity into my primary for a down payment and convert the property to a long term rental. 

Does anyone see any challenges with this strategy that might trigger a due on sell or some other restriction?  I assume we can work directly with the title company to add them on title and draft a simple operating agreement. 

Any thoughts on this strategy ?

Thanks!

@Kevin @Adam

Thank you both for your feedback, I’ll reach out to these groups on Monday.

Have a great weekend

Hello BP.  Does anyone have an insurance providers they would suggest for both LTR home insurance and an umbrella policy in San Antonio, Texas?  Is there an advantage to working with multiple insurance brokers or do they all have access to the same providers & rates? Are there advantages to working with a local rep from a large firm such as  State Farm, Allstate, etc.?

Thanks for your help.

Sorry for missing this @Nathaniel Ziomek - My strategy for the time being is going to be buy and hold while we try and build up a portfolio of properties.  I’m looked my at both SFR & MF in the San Antonio area.  If you have any questions feel free to message me directly so we don’t accidentally high-jack Spencer’s thread! 😬

 
Happy Investing

Enrique V.
Quote from @Nathaniel Ziomek:

Quote from @Enrique Villarreal:

Hey Spencer

Welcome to the forums, I also recently started and have my first house under contract, expecting to close by the end of April.  Good luck on your journey, there are a lot of good resources on this website.

Enrique

 Hey Enrique, congrats! What is your strategy for the deal?