All Forum Posts by: Sean Leone

Tim,

Welcome aboard. Nice to see someone local. I would get in touch with a good CPA that understands real estate and an attorney that understands entities. LLCs are good to use but a good CPA will likely recommend a pass through entity as opposed to holding any real estate in a corporation. LLCs can of course be taxed in any way you choose.

Best of luck!

@Thomas Coburn I would suggest you find a good CPA familiar with real estate as well as a good entity attorney. In virtually any situation for a US citizen you do NOT want to hold real estate in a corp such as the S Corps you have in place. Rather they would suggest pass through entities. They would also suggest a separate entity for a fix & flip business. All the reasons are a bit too lengthy for a post but please get a CPA on board.

Nice to meet another local Seattle investor. Good luck!

I can highly recommend KC Home Rental. They have done great with my property. Give Kaye Wissing a call at 913-271-7734.

Sean

@Dina Harleth that link doesn't work. Sorry I can't speak to tax law intricacies such you are pointing out. Since that exception seems to be quite specific I would definitely want a CPA that fully understands your specific situation. Good luck.

Tom Vs assessment is most likely pretty accurate but I think you may have options depending on how far you would be willing to go to avoid paying tax. I would suggest reading Exchange Up by Gary Gorman and focus on the chapters around a primary residence. It can be found here

http://www.amazon.com/Exchanging-Up-Gary-Gorman/dp/0974684465/ref=sr_1_1?s=books&ie=UTF8&qid=1398654453&sr=1-1&keywords=exchanging+up

A good CPA that really understands taxes surrounding real estate would also be in order.

thx @Angelique Tinney

Can anyone recommend a good, reliable general contractor in Washington state? Pierce County area to be more specific. Thx!

Sean

I can't resist telling this story even though it was a friend of mines SFR rental. He said the front and back doors had the locks changed so they couldn't get in but it was the only house he had seen where the cockroaches were trying to get out instead of in. They had to open the garage door and scraped their back on the ceiling because the discarded newspapers were stacked so high. Upstairs there was a bedroom at the end of the hall. Next to that was a closet. The tenants ripped the door off the closet and nailed it across the bedroom entry where they raised dogs. They threw the dog crap in the closet where it eventually rotted and fell through to the kitchen below where it sat in a pile about 3 feet high. The rest of the house was apparently equally disgusting.

Unbelievable how some people live.

@?joel Owens does your rehab ranges include just unit interiors or do they factor in some form of rehab to the exteriors of the units?

There are many good points made here. So why a MHP over apartments? I researched MHPs extensively and financing for apartments is typically easier and the depreciation (especially with cost segregation) is likely substantially more since you primarily have just the dirt with a MHP. Have you talked to a CPA about the difference in tax benefits between the two?