All Forum Posts by: Pandu Chimata

@Ray Johnson, Thank you for the addittional points. In my case, all these are true. In the sense, I am planning to move in the same vicinity but down grading to a smaller size house. 

When I get a chance, the new house will be around a mile away from current house but it will be at least 800 sq foot less than the current home. 

I am assuming that the differrence of 800 sq foot will work in my favor to get better interest rate. 

@Jason D., Ok. I will ask my lender. Last time, she told me if you already have a primary residence, you can't get the the primary residence interest for another propoerty. 

@Jason D. - Does lender agree to that ? How do I convince the lender that I am going to be moving to the new house?

@Wayne Brooks, Thank you for the response.

But if you buy the property when my curren house is there, I will be taking the loan as an investment property with an higher interest rate. The interest rate will not be changed when I sell my current after I moving into the new house. Is that right?

I have a primary residence at this time. I am planning to buy another house to move into the new house and then sell the existing house. So If I move to the new house and stay there for two years, would that be considered as a primary residence ? What is the record proof that the new house is the primary residence?

When I am buying the new house I will not be qualified for the primary residence interest rate but its considered as an investment property. So in the loan documents it will be registered as a investment property.

Thank you for the response.

Our investment property is in escrow and we are two partners (not my spouse) for this property. We don't have any LLC.

We made very minimum profit so not planning to do any 1031 considering the small amount. 

So we checked the box 7 on section II of the form. It looks like rest all in section II does not seem to be valid. Any thoughts?

We don't want to withhold the taxes during the closing of the transaction. 

Team, 

Here is a scenario. I am currently in escrow since I am selling an investment property along with a partner. At the end of escrow, I will get close to 300K but out of which $15 to 20K is the profit.  so I am subjected to pay taxes for 20K profit. 

Where do I keep this 20K ? in my personal account to reinvest if I can invest in the next 180 days to defer taxes? Please advise.

FYI- I am already looking for more properties and I am sure I will get one before the due time,

Thank you folks. 

I believe it is below the listing price though not seen the house inside, the agent says financing acceptable. 

Secondly, considering the size of the house, the remodeling should not be very high.. again making some assumptions here.. 

outside looks good though not great.. need to spend any money to make it right.. 

Folks, I saw one house listed at least 30% below the market. I understand sellers list the marker 5 to 10% below the market to get more offers on the table. 

What could be the motive to list the house that low? 

Only to attract more buyers.. is the house substantially in a bad shape? They did not post the inside pictures of the house though they did post the outside pictures. 

Any thoughts?