All Forum Posts by: John Woodrich
John Woodrich has started 19 posts and replied 1761 times.
Post: Using AirBnB and Rental Arbitrage in Downtown Area
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Quote from @James Hamling:
@Zach Gulbransen First thing to know is it's very difficult to talk a leasing agent into it because most are too dim-witted, it's true, they will struggle to grasp the very concept of it so it's best to have it written out on a 1 page paper AND to use an example for them to pitch the property owner with because they will never let you speak with owner directly, hence the paper because there going to forget half of what you tell them and screw-up the other half, so make it uber-simple.
Funny hearing this from someone who works for a large property management company :)
Post: Using AirBnB and Rental Arbitrage in Downtown Area
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Post: Looking for an SEC Attorney in Minnesota
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Zach Robbins is who you are looking for. Was at Winthrop but may have changed firms recently. I would search around for him. He is a MN attorney.
Post: New deal purchased in Minnesota
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Quote from @Daniel Anshus:
@Timothy W Hanson hey Timothy congrats on getting a property! I’m curious to know why you’re saving for taxes and insurance when your mortgage payment has that included unit
Not all mortgage payments require using escrow for taxes and insurance. Non-conventional purchases (CD) also typically require you pay insurance and taxes separately.
Post: Capital Gains after Death?
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
As mentioned the family will get a step-up in basis to FMV at date of death. So if sold at the FMV amount there is no gain or loss to be reported. If it ends up stuck in probate for a year and you sell it for $50k higher than date of death there would be a gain based on the difference. Not common though.
No tax considerations at play for CD when there is no gain or loss. There is always that relative who already spent the cash they don't have so I don't see a CD working well for you here. Also they may think you are trying to get a "deal" which could lead to some family drama. Hold tight until it is ready to sell and see if you can buy it.
Post: Full package ADU's available in Minnesota
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
@Bruce Runn Some cities don't like mobile homes/trailers and some seem to be ok with them so long as the axles are removed and they are attached to the land. I would guess that MPLS doesn't allow them but it could be a cheaper option in other areas.
At $300+ per sqft I have to imagine there are some new construction options that are available. I didn't attend the meet up but imagine they can be built quite a bit quicker than new construction and maybe with less hassle but who knows.
Post: Full package ADU's available in Minnesota
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Quote from @Bruce Runn:
I did a tour of Yardhome's ADUs that they are putting up in MInnesota. There are 30 cities in Minnesota that ADU's are allowed. Their full package ADU's are reasonable ($160-$230K). The $160K option is a 500 sq ft 1 bedroom and the $230K is a 2 story ADU with parking underneath with a 2 bed apartment above. Highly recommend visiting their website/contacting them if you have thought about putting an ADU on one of your properties. www.yardhomesmn.com
Has anyone talked to the city to see if a Park Model Trailer on a foundation would qualify as an ADU? Limited to around 400 sqft but probably half the price. I believe some cities will consider a park model a dwelling unit if it is attached to the ground.
Post: Real Estate Attorney - Minnesota
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Hi Hang,
Reach out to @Brad Schaeppi at MN Landlord Law. He can help you with this stuff.
Post: Should you get your own real estate license?
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Quote from @Rosa Lepore:
@John Woodrich what won't matter the tax savings? So your opinion is that a real estate license for flippers is worth the time and cost?
You aren't going to avoid any taxes if you are flipping and acting as a realtor. Bruce's comment relates to tax savings and intent - you can't avoid that.
If you are going to do deals you will save money and can make money being a realtor so go for it. Do what you can to make money (sell homes) and save money (list homes yourself) and plan for taxes on the back end. Don't have to worry about taxes if you don't make any money. Once you make money talk to your CPA about tax strategy.
Post: Should you get your own real estate license?
- Flipper/Rehabber
- Minneapolis, MN
- Posts 1,800
- Votes 1,390
Quote from @Rosa Lepore:
@Bruce Runn Hi Bruce, I came across your response because I had the same question. I am not a GC but I am getting into real estate investing to flip homes. I thought it would be a great idea to get a real estate license in order to save on commission when selling. Could you explain your answer in more detail?
If you are flipping homes it won't matter. Get your license and do some deals.