All Forum Posts by: Sunny D.

Thanks for correcting the info I sent. I heard it in a radio show from a real estate agent. Guess, the experts are right here.

Yes if you move back for 2 years you get full 500K exemption.

It also depends on supply and demand.

I think NYC boroughs will always have a rental demand due to the continued increase in population moving there (official and unofficial migration)

Add the number of students coming in every year from abroad who usually live in Queens as its cheaper

what is the cashflow if you rent @1050 after expenses & financing? Question is will the 15-20K surely get you extra 250$ PM increase? Is there a existing tenant who will continue @1050

Can you share the #s.

purchase price, ROI estimates, rents etc.

I have been told that you dont need to stay 2 years if you want to go back and get the personal residence benefit, you need to stay 2 years to get the 500K exemption. If its say 300K (after selling expenses), you need to stay 14.5 months to get the 300K tax benefit

Just go with option 1, once you have executed 1 and built some equity, look at option 2.

As someone who had lived for 10+ years in the NYC boroughs, I can say that the best first step is getting 2-3 family home, live for free and get rent pay your mortgage.

Both appreciation and rent growth in NYC areas has in gen. beaten inflation if you take any 10 year span. Over 10 years, I bet that the net wealth increase will be beyond what any mid west market will offer. Next, its so much easier to buy and manage in your own backyard.

Personally, I have built enough equity in my 2 homes in my home state and hence I am ready to expand out of state (just closed a home in Birmingham all cash and hope it works out ;). 

so while cashflow is marginal, i am building up 13k equity every year from my principal payments.

This is the summary

Rental income last year : 24K

Depreciation = 6500 (175K non land value , 27.5 yrs Straight line depreciation)

Insurance = 1100

HOA = 1300

taxes 3170

Mortgage interest = 4300 (just checked the statements , paying about 350$ interest, 1050$ principal and 325$ escrow). My loan is at 2.75% 15 year fixed so interest is low.

Maintenance of around : 1000$ last year

I also paid 1000$ PM additional principal for about 2 years that may explain why my interest is low in my monthly statement. In 2018 , my interest will drop to $3150 so the tax bill will keep going up unless I do a second mortgage and take out the equity.

I will read the Bigger pockets book

All

I have a rental home in Folsom that I recently started using a PM for. The rent is 2095 but only cashflows about 100$ PM as i have  a 15 year mortgage. I have an equity of 250K plus in the home now, so I am ok that the cashflow is low.

I ended up with about 7K of rental income profit (after depreciation/mortgage interest/expenses) when I did my 2015 tax. Anyone in same boat , low cash flow and taxable income is high. 

What are you all doing in that situation. The property is in great shape (got new laminate in ground floor and new carpet for bed rooms when my old tenant left) and I landed a potential long term tenant (single elder person with solid income), so don't want to cash out

Cheers

Sunny

I decide to withdraw - so no advice needed.