If you plan is to flip all the funds from the first property into a second property, which is not your primary residence, take a look at a 1031 tax exchange. It has a certain time limit on when to get things done, but it defers all the capital gains tax.
He is correct... a 1031 will get you out of your capital gains as long as you reinvest within the time frame aloted. I have done it twice with no capital gains.
If you plan is to flip all the funds from the first property into a second property, which is not your primary residence, take a look at a 1031 tax exchange. It has a certain time limit on when to get things done, but it defers all the capital gains tax.
yup...actually I just learned that when my parents did this..Sold one of there homes in parker and purchased one in prescott Valley. Thats an idean that I havent thought of for myself...thanks... :rollside:
I looked into buying an appartment complex out of the state, but decided against it. There are too many things that can go wrong with the investment. You will be paying property tax in another state, you are a long ways away in case something goes wrong, no supervision ability, etc...
If you are going to flip something, why not do it in CA? That would make sense to me. How do you plan on finding a fixer upper out of state and making any money on it? If you do it yourself, you will have to take so much time off of work that it won't be practical. If you decide to go with a contractor to do everything, there goes your profit margin and a large chance that you will get F'ed on price. If it was me, I would find something close to home that is under valued and roll on it. Do the work yourself and then flip it. I made quite a bit of $ doing that. Once you start giving away control...good luck.
I looked into buying an appartment complex out of the state, but decided against it. There are too many things that can go wrong with the investment. You will be paying property tax in another state, you are a long ways away in case something goes wrong, no supervision ability, etc...
If you are going to flip something, why not do it in CA? That would make sense to me. How do you plan on finding a fixer upper out of state and making any money on it? If you do it yourself, you will have to take so much time off of work that it won't be practical. If you decide to go with a contractor to do everything, there goes your profit margin and a large chance that you will get F'ed on price. If it was me, I would find something close to home that is under valued and roll on it. Do the work yourself and then flip it. I made quite a bit of $ doing that. Once you start giving away control...good luck.
I hear ya, but California is way to expensive and when you do find a deal, theres always someone there ahead of you. My best friend is now a independant contractor working for himself...He built all the new homes in Singal Hill when working for his previous company. He would be the one doing the work for me. I am skeptical about giving away control like you said though. Plus all home appliances I get @ cost through a friend. Im just lookin at the options. It's time to start somewhere...
the prop management end also?WTF do you do now?Boss
I, personally, buy farms and such to develop them into tracks of residential homes, from which is taken over by my RE company...... Which is tied into my property management co..... questions?
I, personally, buy farms and such to develop them into tracks of residential homes, from which is taken over by my RE company...... Which is tied into my property management co..... questions?
from concrete,congrads.Is Shea Homes there in tenn?
Food for thought...A 1031 is a tax DEFERED exchange. That means you'll pay tax's eventually. Also Let's say you go out and buy a rental or two. One big problem you'll have in the future is you're debt ratio. It most likely will be too high when you go to buy a home for yourself to live in. You could go stated income but i'd bet they will get tougher to qualify as soon as some of the fraud catches up to the lending industry. My advise is to wait or buy a local duplex or triplex. Remember that lenders will only allow you to use 75% of you're income off of the rental when qualifing for the next loan (that may be you're own home). Most likely you'll be in the negitive cash flow from the rental.
You're young! Don't paint yourself into a corner! Trust me I bought my first home when I was 19.
from concrete,congrads.Is Shea Homes there in tenn?
...LOL....Pump co still runs in CA too..... but thanks anyways. No Shea homes here but plenty of others.
...LOL....Pump co still runs in CA too..... but thanks anyways. No Shea homes here but plenty of others.
I need a change of scenery,my wife would kill it there,and id just screw around working for you
Food for thought...A 1031 is a tax DEFERED exchange. That means you'll pay tax's eventually.
That is true, but it also depends on your long-term goals. I own a piece of raw land outside of Kingman now, and plan to flip it into a rental here in Vegas later this year. 1031 to do that.
I have not done the research, but have been told that the IRS allows a one-time tax exempt transfer/sale after age 55. If that's true (and I have a long time to find it and figure it all out), but it may make a nice way to defer until then, then use that as my cash-out.
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