All Forum Posts by: Scott Johnson

Also, I'm not sure how you're paying attention to it on the tax side, but the unit that you are living in's profit at sale is calculated differently than the other unit that you're renting out.

Once you move out, that unit is officially available for rent so from that point forward, any profit gained at future sale will be calculated starting from that point and will be taxable. I believe depreciation on that unit that you were living in starts at that point as well.

just bringing this up because it was mentioned in another post where someone was house hacking. It seems that people are paying very little attention to it.

I'm with Nathan on that one. If there are certain areas that you're looking where there aren't any four Plexes, consider building one. That's the case here in Greenville, North Carolina.

Great to have you! There's a lot of great resources here! Feel free to ask any questions.

Step 1: RECORD IT

Step 2: Contact the developer to inform him that you own the parcel. Have proof on hand (easy enough to find) online of the missed tax payments and any documentation that supports that he specifically didn't pay his taxes.

Probably a simply mistake on his part, but now if he wants to develop on it, he either has to land lease it from you or buy it back.

I'm not sure how the whole tax deed thing works, so that would be something you have to figure out between the two of you. They don't do those in North Carolina

If Jorje works the same way North Carolina does, go to the register of deeds and learn how to look up substitute trustee filings. If someone is selling you a list, they are selling it to more than just you. Try creating your own list.

For pre-foreclosure, you want to market to them. I know there is a way to get a pre-foreclosure list, but I'm always interested to know where the people that are selling. The list are getting the information, and whether I can get it for free.

Currently, you have paper. Paper where the current administration is focusing on.

You own a property where, regardless of the interest rate, you get $250/m cash flow. This is a physical asset, not paper, and it's providing consistent income.

Albeit for your not understanding tax laws and depreciation, I'm wondering why there's a question as to what you should keep.

You understand capital gains, but I'm pretty sure you're not familiar with depreciation and loan paydown. Would love for you to show me otherwise 😌

Appreciation = Specilation/Gambling.

We have little control over the factors that affect it, albeit for making improvements that will force it to compare with other likenpropetoes that are in a higher bracket. But this is flipping/forced appreciation. Far different from buying and "maintaining" a property in hopes they market forces improve the value.

It's the same as purchasing a stock after analyzing that market and charts.

The other factor is inflation, the other thing we have no control over. It's not necessarily that the value of your house is increasing. It's really not unless you improve it. The intrinsic value stays the same, but the value of the dollars used to purchase it are going down, meaning you need more of them to buy it.

BiggerPockets does a great job of beating the drum for CashFlow and Appreciation, but what you're missing is two important factors. Loan pay down and depreciation. Educate yourself on those, and as long as Cashflow stays positive, appreciation is nothing more than icing on the cake.

What's up, brother? I stick to Robert Kiyosaki's teachings. If it's not positively cash flowing, it's not an asset. so what's the point of holding it? Also, after a year, the mortgage hasn't been paid down by much, especially if it's a 30 year mortgage.

The only challenge you may run into is if you purchased it using a low or no money down mortgage option like FHA or VA lending. At that point, you may have to come out of pocket broker commissions unless you sell it FSBO (which is always an option if you have the time to dedicate to it).

I may be confused. Are you trying to figure out what your strategy is going to be when you decide to move into your next property after this first time purchase?

@Adam Schneider on BiggerPockets. He's my lender and he'd have a good idea.