All Forum Posts by: Chris Masons

PS. With a full egress window there this will add tremendous value because it will most likely be a legal bedroom so I would think you can ask that much more for the property.

regards,

Chris

I would almost say a basement hands down. Sure a garage is nice but a finished basement with another bath and additional rooms is adding living space and more value in my opinion.

My question is from a tax assement how much more will the taxes increase with this additional living space?

regards,

Chris

Hi guys,

To answer your questions: If you flip an investment non owner occupied property in less then 365 days you will pay short term capital gains which in a nut shell is taxed at whatever your ordinary income would be taxed at. In other words this income receives no special treatment. I think the range is around 10% to 39.6% depending on your income level.

If you flip an investment and have held it 365 days or longer you are subject to long term capital gains which again depending on your tax rate range from 0, 15 and or 20 I believe. 15% is what alot of people seem to fall under for long term cap gains. Soas you see you get a tax break for holding longer.

Regarding other questions, if you have occupied a property 2 out of the last 5 years you can sell and exclude any taxable gain of 250k or if married up to 500k in tax free gains.

Take a look at a 1031 exchange this will allow you to DEFER your taxable gaiin on a property. there are quite a bit of rules and regulations to follow to qualify for this exchange. Nto that it cannot be done but will require a 3rd party intermediary to assist witht he transaction.

I hope I have answered your questions.

regards,

Chris

Hey guys,

This sounds great! Definitely count me in Darren! And thank you both Darren and Will for planning this event!

Looking forward to it!

Chris

Hi William,

Welcome to the forums! I am not too far from you and live in Somerset County but I actually hold most of my investments in your neighboring town of Union township!!

Do you know what kind of properties you are looking toinvesst in? IE. single family or multi families?

There is a NJ group meetup recently started that takes place monthly in Summit. @DarrenSager runs it. (unfortunately I have been unable to attend this far but plan on making a meeting very soon :)

regards,

Chris

Hi Charles,

And welcome to BP. I am a buy and hold multi fam. investor here in Union County, NJ.

Are there workable deals that make financial sense in Bergan County on multi Families?

I know the taxes up in Bergan County are even higher then they are here in Union County...

Anyway, welcome to the forums and enjoy. There are alot of great people here.

Chris

Sounds liek alot of hassle and unnecessary work for an outcome that may not even be promising.

Why not just sell via for sale by owner?

Chris

I am at 2,500 for all my mult family properties. I agree with above for small stuff I would rather pay out of pocket as to maintain a claimless insurance record for as long as possible and to keep premiums down low.

regards,

Chris

Aleksey,

Congratulations on your 1st investment property! a 4 Family is a great start (it's how i got my start BTW)

My first property I bought under similar conditions as you did it seems. One differnece was the prior owner did have security deposits from all the tenants, but no leases in place and rent was on the low side.

I actually left things as is for the first year as I was cash flowing ok for the most part but after the first year I did bump up the rents. In my town (Union township we are governed by 4% rent control so I raised 4%.

Are you self managing? Are your utilities seperated?

Once again Congrats!! I can remember closing on my 4 family feeling very similar to what you describe " ok now what" LOL Think I remember mosst was Realtor handing me this HUGE keyring with TONS of keys on it! Iw as Like WHOA!!!! I was 23 at the time!!!

Best regards,

Chris

IMO, Bank accountor not it is still tenants responsibilty to have the rent paid to the landlord in full by the due date as per terms on the lease.

If they do not have a checking account that is an inconvenience for them and shouldn't be for you.

regards,

Chris