All Forum Posts by: Luke Tetreault

We are fairly new to real estate investing and we have done multiple BRRRRs and just listed our first flip for sale. After doing more research and talking with our CPA, we will owe about $30,000 in capital gains tax. This house was bought with a conventional loan under my personal name. I am looking for options on what we can do to offset our profits and not pay the taxes. We hold 15 apartments and I have never done a cost segregation on any of them, which could be one option I think? We were looking into creating an S-Corp for our flip properties because we were told that an S-corp bypasses capital gains tax. Would it be an option to create an S-corp and move the house into it prior to sale or would that still be considered a regular sale therefore, having to pay capital gains tax either way? A third option, we hold the property, rent it for two years and then sell. The property does not really cash flow but it would break even. If that is our only option to save on taxes, it would save us enough money to be worth it. Like I said, this is our first flip, so we are very new to the tax side. I would love to hear any suggestions and new advice going forward!

We are fairly new to real estate and were told to set up our LLCs under a holding company in Wyoming. The people who we worked with in the beginning that had us structure our business that way are no longer accessible. We were more told than we were taught, so I want to know why. I am looking for the benefits of having a holding company in Wyoming and why we would want to be structured this way. Thank you for any input.

 Thank you!

Fairly new to investing and I am looking for some opinions on BRRRR rentals that don't perform well right now with the high interest rate but are perfect when it comes to getting your initial investment back out. Yay or Nay?

Example of one of mine - 

After the refinance, I was able to pull out my initial investment of 87k plus an extra 21k. Which was great and allowed me to keep pushing forward. Now the issue is, with the 7.5% rate after refinance. It only operates at about a net 6% CoC return after taxes and insurance are paid. I look at it both ways, I essentially got it for "free" but it doesn't bring home a ton. Are you guys calling this a good deal and just wait for rates to drop so it cash flows better? Or a bad deal, and I should probably dump it? I have a couple right now that all fall under the same circumstances so really curious as to what everyone thinks.

Thanks for any thoughts!

Thank you for the help!

Thank you Dave! That’s great info and I will check them out! 

How’s it going! I have a house flip that will be ready in a couple of weeks and I would like to 1031 the proceeds of that into a bigger deal. This will be my first 1031 and I would like to find a recognized Qualified Intermediary to bounce questions off of and handle this deal. I have heard you have to be very careful when doing this, so I just want to stay on top of what needs to be done. I’m in Upstate New York. Thank you for any help!