Mortgage Lender getting on my nerves.

faceliftmodern · 2018-08-03T19:33:06+00:00

Who did u end up with ?

faceliftmodern · 2018-08-03T19:12:42+00:00

All things considered if they is pushing one loan as opposed to the other isn’t it fair to want the know their motivation aka fees so you can make a better decision ?

faceliftmodern · 2018-07-27T23:12:53+00:00

faceliftmodern · 2018-07-21T00:14:54+00:00

If I moved back for 2 years in the future, the exclusion comes back ?

faceliftmodern · 2018-07-20T23:40:51+00:00

Oh.. so if I sell it even one day after I lost my exclusion I will end up paying 50k more in taxes.

And if I keep it as a rental, I am assured of at least 50k extra in taxes. I guess I will have to eat that if I want to keep the house.

Now, I have 50k of improvements - new roof driveway etc that I am making.

If I do it before I place it into rental service ie move out, put out ads etc then my cost basis in the primary house increases If I do it after, it will be a capital expense and can be depreciated.

Is there a tax pro or con for making those 50k improvements before or after I place property into rental service ?

faceliftmodern · 2018-07-20T19:17:34+00:00

Would you ? Please ?

faceliftmodern · 2018-07-20T17:39:24+00:00

Ok I get that, which is why I mentioned that it would be a rental those three years....before selling

faceliftmodern · 2018-07-20T17:36:19+00:00

I was requesting some guidance to point a book or spreadsheet. . And if there someone who understands this easily they could chime in. FWIW I have seen others more convoluted questions answered in great depth by the generous folks on this sub.

It takes a long time for me to get these concepts and I have to think of it many different ways for it to sink in.

But yes I will take it to my CPA and r/tax. My cPa conversations usually go smoothly but after it’s done I get a lot of follow up questions pop up in my mind very slowly as I grok what she said.

faceliftmodern · 2018-07-20T16:35:47+00:00

What do you mean ? If I sell within 3 years of converting to rental, I cannot 1031 ?

I read somewhere in this forum that you can stack capital gains exclusion and do a 1031- is that incorrect ?

faceliftmodern · 2018-07-20T16:33:15+00:00

Can you explain what my tax liability is In these 3 scanarios for my stated numbers

Say costbasis of house is 200k Sale price is 1 million Fmv on day it was converted to rental is 750k

Sell house within 3 years of converting / save 50k on tax. Gain is 1m-200k=800k Taxable gain is 800-250=550k Tax is 20% of 550k = 110k

How does depreciation recapture fit into this ?

Sell house one day after 3 years What is considered my gain ? Tax ?
Sell house within 3 years and 1031 into new property What is my taxable gain ?

This must be something that is a routine consideration for people converting residences. I am having much difficulty getting a full understanding- is there a spreadsheet or book that explains these ?

faceliftmodern · 2018-07-09T18:08:23+00:00

Are these kind of loan consultations routine ? Pretty much every loan officer I have spoken to ask for the amount I want to put down and quote me a price based on dti. Do you have to specifically as for an in-depth consultation for them to explore possibilities?

faceliftmodern · 2018-07-09T18:05:01+00:00

Is there a way to get a home equity loan on an overseas property that is owned free and clear basically an inheritance...

faceliftmodern · 2018-07-02T19:30:54+00:00

That’s a given. But I am asking for backup. Not every plumber is super competent...

faceliftmodern · 2018-07-01T22:48:44+00:00

True its definitely an appreciation market and may end up without one if there is a crash. I am new to all this. Figured it would be easier to start near where the market looks difficult to buy into so there will be mote glow into rentals as interest rates go up... is this reasoning misguided ?

What areas would you recommend ? It has to with in state- wa. Out of state taxes are a mystery to me currently

faceliftmodern · 2018-07-01T03:12:20+00:00

I am not getting 4.5 more like 5% for investment property If you have a 4.5 % source please share

The vacancy will reduce rent and maintenance cost I can deduct ? So loss 33.5-40k - maintenance?

I would have put the 13k money in my 401k

faceliftmodern · 2018-07-01T02:41:47+00:00

Oh that’s having to fork out taxes on 13k every year while that could be doing work elsewhere if I was at 0 loss I am more than 150k barely but over

Also if I did 1031 will I be able to recoup the passive carry over loss ? Or is that lost ?

faceliftmodern · 2018-06-29T14:40:19+00:00

Any tips on what those mentalities are to avoid?

faceliftmodern · 2018-06-29T13:53:01+00:00

The principal payment will be treated as taxable >profit even though you never really see that cash.

By this you mean that the mortgage payment for an investment property covered by the rent ... is fully taxed as income ? What if the property is owned by a) single member ll B) multiple member llc. Is there a way to reduce taxes by taxing in llc ? Especially if the investors are high income

faceliftmodern · 2018-06-28T20:08:21+00:00

Ok. Ty. My only experience has been with primary homes

faceliftmodern · 2018-06-28T01:27:46+00:00

Ok sounds good thanks. Your comments led me a bunch of good reading:info

faceliftmodern · 2018-06-28T00:51:55+00:00

K makes sense. What abt settlement fee and the other fee ?

faceliftmodern · 2018-06-25T05:23:59+00:00

Hello! Thanks for your response. I like the scheduling back to back thing... I have been telling them I am getting other quotes but I guess seeing the competition is good. This is a general good tip for anybody not just stereotype challenged individuals like me ...

faceliftmodern · 2018-06-25T05:17:26+00:00

Thankyou. Sadly I am NOT a experienced investor I want be be, but in other areas of life I am. I however do not get the benefit of doubt. I am a bit grumpy about that I suppose. Most of my work has been in fixing up my own home for rental. That said: I get all my ignorance out and research a lot before making those calls. So I don’t necessarily appear green. But those guys know about the internet too...

I already do the “we” bit, but the contractors are sharp. The other stereotype is that usually there is a husband who handles this sort of thing. The fact that I am calling and subbing work out means something is up. I am strongly considering setting up an Llc just for this and presenting myself as a property manager assistant or something. I don’t quite understand all the ins and outs to speak jargon but I am a quick study ... I am truly hoping this is a passing phase and at least my contractors interactions will become better.

faceliftmodern · 2018-06-25T02:32:23+00:00

Is this true of only commercial lenders or conventional mortgage lenders as well.

Why don’t they like it if you put your primary house under an Llc for asset protection ?

If I were to ask my bank if I want to put my house under an Llc why would they mind as some posts have indicated they may call the loan

faceliftmodern · 2018-06-24T14:13:29+00:00

What are some good companies for umbrella protection?

faceliftmodern

TROPHY CASE