All Forum Posts by: Tatyana Shevnina

My take is that you don't need approval. You'll file with a partial exclusion and keep documentation.  Also, yes to short-term capital gain and yes to moving up the tax bracket.

I had to refi to get rid of mortgage insurance after my property increased in value. 

The only option with my existing lender/mortgage at that time was to pay down the mortgage to a specified amount. They wouldn't entertain market increase in property value as a reason to adjust LTV.

I would ask your lender what their conditions are. Good luck. 

Here's a link to an article with unforeseen circumstance examples -- all involve a clear hardship.

I prepare taxes but haven't had this one come up yet :)  Good luck.

@Ryan Graves

For reference, the rental is a condo.

1) Do you have a property manager?  Yes

2) What is the biggest pain to deal with as a landlord?

G) Other - complex going through renovation which may make it hard to find next tenant.

3) What is one issue stopping you from taking on more properties other than finances? Finances is the primary reason.

4) If you could make 1 issue go away permanently, what would it be? Have not had any.

5) Why do you chose to manage yourself instead of with a property manager (if thats the case)?  Happy with the property manager so far. 

6) How much time per month do you spend on management related tasks?  Very minimal since I have a property manager -- ok a repair or discuss renewal terms.  

@Loren Whitney  - in the first scenario (primary for 2 years, rental for 3 or less then sell)  -- no proration and full exclusion.  In the opposite case (rental for 3 years and then primary for 2 years) -- gain prorated for 3 years of rental time.

I originally referenced this article that explains it well and has a nice example. (Note: I have no affiliation to and not promoting this firm - just like the article :)

http://www.goldentax.com/4838/A-Twist-For-Home-Sal...

The property management company I work with for my rental asks for a one-year lease. That's in san francisco. When I used to rent in SF, my rent was month-to-month (possibly after an initial one year lease). 

I always thought this decision is up to the landlord's preference.

@Michael McDermott 

My vote is to use a tax preparer/accountant. I'm a tax preparer (but all the way in CA :). Sure, turbo-tax can handle your situation, but I've amended plenty TT returns where clients either didn't take depreciation on rentals at all or didn't take it correctly. Besides, a professional will make sure you take all the rental deductions you are entitled to. 

Don't have any recommendations for you, but I personally look on yelp if I can't get a referral otherwise. 

Good luck and congrats on the house hack.

@Dion DePaoli - thank you for your detailed and very educational reply! My recollection is that there was no demand for an impound at origination -- it was my choice to have it. When I asked the lender not to include home insurance in the impound, they didn't include it. I mistakenly thought that I can cancel the impound at any time. I also understand the parameters for PMI cancellation.

Time to refi and hopefully with a lender whose refi process doesn't take 3 different newbie loan processors and 6 months to close.

@Jeff Trevarthen - yes, we are close by! Thanks for the feedback. I'm looking at a 7/1 ARM. Like you said, lower interest rate, more cash flow and still gives me enough time to figure out the next move before any adjustments kick in.

@Dave Toelkes  - thanks for the response.  I see your point.