All Forum Posts by: Alex Olson

@ryan thomas thanks for the explanation

Hi, I purchased an 8-unit set of townhouses in Seacoast New Hampshire in September 2020 and renovated all 8 units from October to January. The total project cost was ~$1.0M and now, based on current income/expenses and an 8% cap rate, the property has appraised for $1.350M. To raise capital for my next acquisition, I am refinancing the property with a higher loan principal and also contemplating the sale of 30% equity to a few limited partners. 

If/when I sell 30% of the equity, my presumption is that I will incur a capital gain of ~$105K (0.3 x ~$350K). Because I have only owned the property for ~6 months, those funds will be a short-term capital gain and will be taxed as ordinary income. Are those short-term capital gains eligible for a 1031 exchange, assuming that I satisfy all other 1031 requirements? Or are only long-term (>1 year hold-time) eligible for a 1031 exchange?

Hello BP, 

Recently I sold a property and did a reverse 1031 exchange where I was able to put $3M of the profits in a different property. Unforchantly I still need to identify an additional property where I can put up to $1.4M into it within the next 10 days or Uncle Sam will be getting a good pay-day. Does anyone have any creative ideas? I have been looking at Austin Texas area and developments in Idaho. Let me know if there are other areas that I should look into. Also, if anyone has any apartment buildings they are looking to sell or know of any that are coming up please let me know! 

I am selling a rental house I have owned since 2006. It has been a rental since 2012 and I was just notified the tenant will be moving out March 31.

So, I have a couple questions:

Should I talk to an accountant or has someone been through this before. I am trying to calculate how much needs to be added to the 1031 or how much I can offset based on prior costs. 

And...sounds like I will be in the market for another investment property or two in the Warren, Sterling Heights, Rochester, Auburn Hills, or similar areas. I prefer to find properties in poor condition. Does anyone have a best practice to find such properties?  I have used a Realtor for the last couple but, just curious. 

I am currently looking to invest in my first out of state property. I am interested in investing in Kansas City, MO. Looking to connect with any Realtors and Property Managers that can help kick off my out of state investing journey.

Hey guys!!!

Just bought our first home in Knoxville, TN!

My question is how do you determine your rehab budget if you plan on flipping within 3 months

Thanks!

Hi, trying to figure out logistically how to go about this plan. We wanted to sell one of our rental property in a HCOL area that’s about $1mil into multiple cash flow properties in out of state that is in the range of about $200k each. Our current rental only generates a few hundred dollars cash flow but we are sitting on a lot of equity due to the market appreciation in the area. We have started purchasing out of state properties separately but so far all are new construction. I am current in contract for a new construction that should be done in about 6 months. Will this property be able to be included in one of the exchange property? And how does one go about purchasing so many properties and have them all align to close simultaneously? I wish I can buy properties just like buying stuff on Amazon...