All Forum Posts by: James Lee

@Bill Exeter Thank you so much Bill! That was very helpful.

Thanks for the info Dave, that was very helpful! I do indeed plan on renting the manufactured homes out, but does the inventory rule mean I can't ever sell the homes without triggering taxation? Or is there a waiting period? What if I sell everything as a portfolio rather than individually? Would appreciate any clarification!

Hello all, my family is planning to do a 1031 exchange where we sell a multifamily building we own in New York, to buy a piece of land in Texas and turn it into a manufactured home community. Funds from the sale would be used to acquire the land and build the manufactured homes. I'm aware that this is a more complicated and costly version of a normal 1031, and wonder if anyone has any experience doing one of these. What kind of things should I watch out for? Thank you for any assistance!

This was all very helpful, thanks everyone for the wonderful insight. We feel much more comfortable pulling the trigger on this house now.

@Jim Cummings The property is about an hour north of Austin, in Killeen-Temple-Fort Hood metro.

Thank you everyone, good to know that this hasn't been an issue for most people. Haven't encountered anything like this before so I wasn't sure how to weigh the information. I found it odd that the owners of these mineral rights would buy them without the intent of someday coming to drill or mine, so I figured if someone holds the rights they would come knocking on your door one day.

Hello BP! Long time lurker first time poster, I love you all for all the things I've learned from this community over these months, but now I need your help. We are buying a first home near the Austin area of Texas, found a house we love, but hit a snag: the mineral rights do not convey because the sellers don't own them. According to the agent, this is fairly common and nothing to worry about. A Google search paints a nightmare scenario where mineral rights owners can come in whenever they want and dig up your land and don't even need to fix it afterwards as long as you can't prove negligence. This is a rural property if that makes a difference.

How much should I care about mineral rights ownership? The property comes with quite a bit of acreage so a large part of the value is in the land. Should I be worried that some day an oil company will come in and start drilling in my back yard? Should we walk away from this one and find a house that does come with mineral rights? Or is this much ado about nothing?

Experienced Texas investors... help!