All Forum Posts by: Tyler Cote

Hi - I'm about to sell one investment property to purchase others. I'm intrigued by the concept of self-storage facility investments. Ideally, I'd like to get my feet with by buying out a smaller mom and pop facility in the southern New England area.

Two challenges:

1. I'm looking in price range of $600-750k. All of the facilities I've seen listed are significantly more expensive. 

2. I see very few listings on loopnet for self-storage facilities. I'm unsure if inventory is this low, or whether I'm not looking in the right place(s).

Looking for feedback on how on how to more effectively look for a foothold in this market. Thanks in advance!

@Wayne Brooks Yes, that is what I meant. Thanks for clarifying. I’m wondering funds “tied up” in my 1031 can be used for improvements on the newly acquired property and, if so, with what restrictions.

Wondering if there are any set of conditions under which it’s possible to use tax deferred proceeds to rehab the newly acquired property. I hadn’t come across anyways of doing this, so assume the answer is no, but wanted to pressure test that assumption nonetheless.

To make my question more clear, let’s assume I’m selling property 1 for $400k. Will net $200k in proceeds. I’m buying a property 2 for $500k, financing with 25% down.

1a. Is there any way I could put $125k down, and then use the remaining $75k to rehab that property?

1b. If not, is there any way I could subdivide the lot (let’s assume this is kosher), then use the leftover $75k to build on the newly established plot of land?

2. If no to all of the above, is the next best course of action to take out a HELOC? I could only do this using my primary residence.

I’ve found this forum incredibly helpful since I discovered it a few weeks back — thanks in advance for any insight!!

Hi - I recently learned about some of the benefits of a Solo(k) account with respect to using tax advantage to savings towards and Real Estate (hat tip to the BP TC strategies book!). I am a public school teacher and only have access to a 403B and 457 plans.

Is there some nonprofit sector equivalent to a solo(k) that would allow for some of the benefits such as tax-free borrowing and larger contribution limits?

Writing for some clarification on how the 1031 actually works — plan to use it for the first time in the coming weeks.

Let’s say I’m selling a property for $200k, with roughly half as proceeds and the other half going back you pay off the mortgage. I haven’t lived in the house in 2 out of last 5 years but have owned it for more than 1.

If I want to defer all taxes, I must exchange for a property worth >$200k. But, what if I decide to exchange it for a property that I buy for $120k? In other words, how do I determine what portion for the original cap gains hit I’m eligible to defer if I don’t meet or exceed the sale price of the relinquished property on the newly acquired one?