All Forum Posts by: Account Closed

Agree with the majority of the responses here. Always about the numbers, I would agree FHA loan 3.5% with house hacking is the way to go with the historical appreciation that LA county properties appreciate. The most unattractive of buying right now is the loan rates. There are options to mitigate this, I work with investors all the time and as I am also ceritified loan originator so if you just want to see number feel free to reach out.

Good Luck

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $154,500
Cash invested: $154,500

Property inherited from Grandparents

@Dave Foster thank you looks like I am considering the third option as I want to diversify my portfolio. However the property is a good performing asset so strongly thinking of just doing the first option and keep the asset and get into a MF. I have much to think about!

I own a free and clear SFR and looking to use the equity to do a tax free exchange as a down payment into a multi-family. Any advice? Is this smart, pros and cons etc??

All,

Just had the workshop apparently there are 5 ways to deal with your property:

1. Sell and take the capital gains tax (In Cali can be close to 43% with Federal, State, Depreciation Recapture, Investment etc)

2. Installment Sale (Lender gives promissory note which is usually around 10 years deferment)

3. 1031 Tax Free Exchange (Transfer to another market or equal or larger real estate)

4. Deferred Trust Sale (Place in Trust and have trustee manage assets - {annual costs}

5. Monetized Installment Sale (Lender, Dealer involved allows Seller to receive 95% of their profits as loan where they can defer capital gains for 30 years)

Obviously there is more involved in every strategy but that is the basic summary of each. 

@Dan Mahoney Great thank you! Well I have my personal situation in addition to being a real estate agent I have other clients to be the best service to myself and others I am doing my best to educated on everything! Thank you very much!

@Dan Mahoney The reason for the post was to find out more. Can you please let me know more details? I wanted insight in this strategy.  I am trying to weigh the pros and cons if I am anticipating letting go of some of my properties if I don't want to sit through another real estate cycle. 

I am not selling anything, I am an investor and am planning on doing this myself as there is a way to do an installment sale and take the proceeds and invest it into an annuity. I was just curious if any other savvy investors were aware of this option. 

I agree on 1031 is the only true way this is a case if you DO NOT want to maintain an investment in real estate. 

These are for older clients or clients who are pretty heavy in real estate and don't want to sit through another cycle. There is a program can keep 95% of their returns tax free