All Forum Posts by: Michael Keane

Nicole, thank you. Makes perfect sense! 

Hello BP World! 

I own a one-bedroom condo that is my primary residence.The balance on my 30-year fixed mortgage is about $247,000 and the appraised value is about $320,000. The current interest rate is 4.25% . I plan to live in this unit for at least the next 4-5 years and ideally would like to hold on to it as a rental property when I eventually move out. 

Given these factors, would it be worth refinancing for a lower interest rate (3.75%; 30-year fixed)? Is it worth the $9,000 in refi costs (these would be rolled up into the new loan, thereby reducing my equity). 

I would appreciate any insights! 

Thank you,

Michael Keane

Be aware of cities that are cracking down on STRs! Look, for example, at the recent STR Ordinance passed by the City of Charleston, SC.

Thanks, Andrew. That makes sense! 

I own and reside in a one-bedroom unit in a multi-family condo building. We homeowners are paying a monthly special assessment (through 2024) for a construction loan (facade upgrades, waterproofing, etc.).

If I were to sell my unit at some point, can the total amount I've paid toward the special assessment be deducted from, or otherwise partially offset, that capital gains taxes I would pay on any profit I make on the sale? 

Dave, thank you for the very informative response. An investor acquaintance of mine alluded to the same 2-year threshold for tax exemption of $250,000, so it's helpful to have another investor corroborate this.

Thank you, Tyler! I've heard similar insights - i.e., implications on capital gains taxes if I were to sell one of the units within 2 years from sale date.

Hello Investors!

I own and reside in a one-bedroom condo in Long Beach, NY. I want to use the equity I have in this unit to purchase another, comparable condo unit (either in my building or nearby), as a rental property.

My question: Should I continue to live in my current unit as my primary residence, or should I move into the new unit and rent out my current unit? Assuming the rent for either unit will cover the respective mortgages, does it make a difference in terms of taxes, capital gains, etc.? 

Thank you!