All Forum Posts by: Nancy Chawla

We have a two family home. We live on one floor and the other half is rented. The property is being sold for $1 million with a mortgage of about $300k. We're planning on doing a 1031/121 combo. The rental half is essentially half the property, so worth $500k. I need help understanding how the mortgage will be handled. If rental portion is half, then mortgage would be $150k. 

1. Would that $150k come out of the $500k proceeds involved in the exchange?  
2. If the answer to the above question is yes, then I'd have $350k to use in the exchange. So if I buy a replacement property worth $500k, can I use proceeds from the personal residence half to cover the other $150k? Or would that result in a taxable event because my mortgage would go from 150k to 0? 

Hello, my parents would like to sell their investment property and buy a new property thats bigger. They are unable to qualify for a mortgage currently as they are out of work so I am stepping in to help. I would like to know if what we're thinking is accurate and doable. My parents would roll all their proceeds from the 1031 exchange into 75% of the new property. I would own the other 25% of the property as a tenant in common. I would likely take out a mortgage to cover the 25%. I was never on the title on their investment property that they are now selling. Is this doable? How do lenders usually approach transactions involving tenancy in common?