All Forum Posts by: Alex Olson

I currently own and live in a two family row home. I live in one unit and rent out the unit. I report the rental income on schedule E on my personal 1040 along with applicable expenses (ie 50% of the yearly property tax). I am now looking to sell the property to buy another property.

Has anyone had any experience with doing a 1031 exchange on half the property and then using the $250k personal exemption on the other half? The title company is saying they have seen it before but I’m not having much luck seeing definite answers online.

Thank you!

I want to invest in single family homes targeting college towns. Ideally, I would be completely hands off. I am looking for property managers who can manage single family homes for the use of rental to college students. I want to be hands off. Is this something common? Despite today's new norm, I would love the opportunity to get involved in either a college town or a lake house for Airbnb opportunities. 

Thank you, 

Does the profit from selling a property with a 1031 exchange affect income requirements of the ACA/ Obamacare?

Wow! August came and went so fast this year and homes are selling quicker than ever! Lets look at the numbers and decipher what exactly is happening in the market.

Amidst the approaching labor day, and unofficial end of summer, the number of sold homes slightly decreased from 4659 in July to 4000 in August. There is a direct correlation in listed homes though and those numbers fell also from 5459 in July to 5054 in August.

The average price per square foot has steadily been increasing since February, starting at $115 and shooting up to $129, a 12.2% increase in 6 months and up 9.3% from last year.

In August, the average days on market was 34 days. This is alarmingly short, especially considering all the homes that don't sell and aren't priced correctly are also factored in. Realistically, if a home is priced right for the market it will sell.

The August average sold price is appreciating. Both the average median sold price and the average sold price have increased by 11.1% and 12.9% since this time last year respectively. The average median sale price was $250K and the average sold was slightly higher at $289K. My speculation of this is due to new construction catching up to meet demand. Our KC builders are busy and new developments are filling up, as old developments are being completed.

The absorption rate based on closed sales is currently at 79.1% and 78.9% for pended sales. Here's a quick explanation of Absorption Rate as follows:

1. Absorption Rate based on Closed Sales (%)

Absorption Rate based on Closed Sales (%) = the number of properties sold divided by the number of properties for sale (in percentage).

For instance, if there are 1,000 active listings and 100 of them sold in a given month, the rate of absorption would be 10%. 10% of the market is being sold in that given month.

1. Absorption Rate based on Pended Sales (%)

Absorption Rate based on Pended Sales (%) = the number of properties pended divided by the number of properties for sale (in percentage).

Finally, the months of inventory based on closed and pended sales are at 1.3 months. Economists say that a balanced market is 6 months of inventory. We've had short supply of homes for years now and the historically low interest rates (which dropped well below 3% for the first time in more than half a century,) combined with low supply of homes and high demand all explain the significant price increases we've seen in this season. The 1.3 month inventory is .1 months higher than July's but that's equivalent to the Chiefs winning against the Texans with a score of 49 vs last month's hypothetical score of 52. It's super high and the difference is negligible.

That sums up this month's Kansas City Housing Market Update. Basically homes are selling quicker than Mahome's pass to Kelce for a TD. As we enter a new season, will the market cool down along with the weather or will it continue the unprecedented hot streak? Only time will tell.

I am considering selling a property that will have about a 60k gain and using a 1031 exchange to purchase another property for 110k.  I will use personal funds from a Helock for the remaining 50k of the purchase plus any renovations.  I was told by a CPA that once the newly acquired property sells in the future the gain from both sales would then be taxable because I am mixing 1031 funds and personal funds for this purchase.  I have never done a 1031 exchange but was under the impression that one could roll the gains from one property to another and so on.  I'm exploring all the resources I can read and am still unclear.  Can someone clarify if I am understanding incorrectly or if I was misinformed?  Best regards,

Nick