patrick.net

Eman says

Fort Wayne,

I don’t know your personal situation, but there are a few ways to strategize your situation.

Let’s say you bought your house for $200k. It’s now worth $1M. You qualify for $500k exclusion so your tax liability is on $300k net gains after the exclusion and your cost basis.

Assume you own it free and clear. I’d do a $500k cash out refinance. It’s tax-free and you use it however you like.

Rent the house out for a year or two while you live at your new location. If everything is cozy, sell the former house then, pay off $500k loan so you only have $500k to 1031 exchange into the next asset(s).

If you want, you can 1031 exchange into something would you move-in and live “forever” or at a later date.

After the 1031 exchange, rent it out for a year or so. Then you can legally move-in to that house. However, since it’s a rental before a primary, the “new exclusion” will be prorated. Let’s say you live there for 9 years and it was rente...

thanks

Bless their Poor Pitiful Hearts.

https://www.msn.com/en-us/news/us/fremont-landlord-says-tenant-who-owes-101k-is-using-covid-laws-to-avoid-eviction/ar-AAVZrGb?ocid=msedgntp&cvid=eee6c8a15c4f40e298ca49fc858d5c04&source=patrick.net

B.A.C.A.H. says

Bless their Poor Pitiful Hearts.

https://www.msn.com/en-us/news/us/fremont-landlord-says-tenant-who-owes-101k-is-using-covid-laws-to-avoid-eviction/ar-AAVZrGb?ocid=msedgntp&cvid=eee6c8a15c4f40e298ca49fc858d5c04&source=patrick.net

This is why you want to be an investor, not a landlord. Hire a professional property management company to manage the rental for you. If they screw up with the screening, In this case, fake W2 and fraud credit report. The property management company would have caught them. Also, they do previous landlord verification too. If they screwed up with the screening, their insurance company would pay for their negligence. Highly unlikely that the PM company will screw up.

As I mentioned previously, our PM company manages almost 100 units for us. NOT 1 eviction in all these years. Not 1 eviction through the pandemic. A couple of tenants fell behind in rent briefly during SIP, but they all caught up shortly after. Don’t be penny wise pound foolish. Let the professional do their job.

Eman says

As I mentioned previously, our PM company manages almost 100 units for us.

You are very fortunate to have found a decent PM company. My experience (along with a few others who hired PMs) is PMs are high priced and use your maintenance funds as a piggy bank for their contractor buddies. Stuff like spending $200 to reset a flapper valve in a toilet, or putting on a new roof without doing a tear-off of the old shingles but billing for a tear-off anyway.

Sell it and strategize where you think the mass exodus influx will land those fleeing over crowded Cities that lack the inventory. And try to position yourself to have land for the inevitable building boom in this country We're way past due for a building boom, and new cities and towns.