All Forum Posts by: Kris Martinez

Hey Jade, welcome to BP. I'm in San Antonio, as well. Great place to be. Merry Christmas!

I don't bring it up, either. I find people are generally happy to hear about your ventures, but when they feel you're going to find success (especially when you become more successful than them or they don't "get it"), the happiness usually turns to jealousy or some other form of negativity. Especially family. My family seems to think the only way to invest is locally and all other places are bad. Just keep hustling 

@Michael McCartney, please pm me his number as well. 

Hi Roy,

My opinions: First, if you are providing the care for your mother, she could qualify as your dependent, which has favorable tax implications for you. 

Second, your tax basis in the property when your mother passes will automatically be stepped up to the fair market value ($450K at this moment). You would be taxed on capital gains above this amount if you elected to sell it. Also, if there is an estate, the estate tax due AND estate income tax (federal and state) on the gross estate amount - including the fair market value of this home - would be taxed. There are generous credits and deductions that most likely will reduce the federal tax liability; however, the tax is upwards of 40% and estate tax could be different (more harsh) for your state. Although your siblings are not involved with this property, legally they could possibly make a claim for it through the estate/inheritance.

In addition to what the others have mentioned, I would try to see if your mother can sell (how could you refinance a loan that is not in your name, unless the lender allows you to assume it) it to you. It is best to plan these things now. Since it is her owner occupied residence she can exclude capital gains up to $250K if single. Please seek out a CPA or attorney to help you through this. 

Hope this helps.

@Joseph Lunstrum, with a ARV of 100k and an 80%ltv refinance at $80k you would get your $16k back. However, you need to recoup rehab expenses, and you wouldn't see that until you sell it for 100k (100k-selling costs-loan payoff-rehab costs=profit/loss). There are so many nuisances and assumptions that must be considered in your deal analysis you really should seek out a network/mentor who will guide you. While theories like BRRRR are not specific to you, they can be a great tool to help you create a plan.

Hey Ben, see below contact info for the lender I have used for my investment property. He will not require returns, and will take into account the leases as gross income. He is based in CA. 

Brett Gilliland

Mortgage Loan Officer

I am buying a duplex, using Mike's method, in Monticello Park, which is in the Deco District. Like Mike, I am staying close to downtown and looking for value-add. This property has an attached garage that can be eventually converted into an additional unit. Buying FHA 3.5% down owner-occupied.