All Forum Posts by: Joel Hudspeth

So youre making around 32% cash on cash for the first year then cap out at 1.6%, so at some point you will want to pull cash out or 1031. 

I only buy properties that cap at 12% or higher.

I wouldnt do it. 

Thanks Natalie,

I do have my RE license but do not qualify as a pro due to hours. I'm actually a HS math teacher. We have a couple of other rentals that we manage and have been able to claim an active roll so that income is active not passive. I think the same active status would be for the park as we manage it and on weekends I do fixes/repairs. Are active losses limited to the same 25K limit? Also the work that has been done is repairs of the homes, sprinkler systems and removal of some trees. 

My wife and I purchased a park in Idaho last Jan. There are 31 park owned homes and 14 renter owned homes.  We have done quite a bit of work to the park owned homes in the tune of about 45K. This would be new roofs, furnaces, water heaters, windows, and general materials.  A friend of mine who is not a CPA says I can only write off 25K a year and the rest is carried over to the next year.  Is there a limit to how much of that I can write off per year?

Yes the goal was to pay off the owner carried note off faster. Thanks for the input!

I have a question regarding a 1031 exchange. I own some single family rentals and a newly aquired mobile home park. I am curious about selling one of the single family rentals and 1031 exchange to pay down the mortgage on the mobile home park. My wife and I started an LLC that owns the park. Could we start a new LLC and have it buy the park from the old LLC (simulating a new aquisition of like and real property) for the 1031 exchange? I realize you cant use 1031 exchange to pay down a mortgage on a property that you already own, but is this a loop hole?