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SD Realtor
Participantsounds fantastic. why don’t u take a poll to see how many property owners have pursued that unique strategy. really i am sure plenty have done so.
ParticipantI do not debate the ease of breaking laws or tax codes, nor do I give advice to do so. If it works for you great. If it works for others great. It doesn’t work for me nor would I advise people to do it.
ParticipantI understand southern5. For some people it works, and for others it does not.
ParticipantNo the way to do it is to do what is best for you. For most people including myself, breaking the law or risking an audit is not the preferred way to make money.
ParticipantCap gains exemption is very clear. You must have occupied it 2 of the last 5 years. However losing a cap gains exemption in exchange for the tax benefits of income property is a fair trade. I would not let that stop me.
ParticipantConverting an owner occupied property is a preferred way to accumulate real estate assets over a long period of time. I always encourage potential sellers to consider holding onto propety they own and covert it to a rental as opposed to selling and then buying. Owner occupied financing is the absolute lowest rate as well. If it is not feasible then I understand. Additionally if your only source of a downpayment is the equity in the property I understand that as well. It may serve you well to sit down and pencil things out before you move forward with accepting an offer. Run some sample scenarios over the next year or two to see if you can get away with holding the property and being able to come up with the downpayment for another home. If not then I understand. If you have already done all that and made the decision, consider this response moot. Once you sell it, it is gone.
ParticipantAs I have always said, statistics can be presented in any manner needed to make things seem okay. You are told inflation has been tame to non existent for the past few years yet if you look at the price of food year over year it has gone up substantially. How about the number of people underemployed? How about the number of people who have given up working altogether? I am not saying the economy is not improving because it is. However I just do not gulp down whatever the govt tells me and smile and say yep everything is great!
ParticipantThat is a sound strategy~
ParticipantThere is no harm in renting. Just keep expectations realistic. If you are going to rent in order to find conditions that will have a higher level of inventory then that makes sense. If you feel that there will be some substantial price decline then be prepared to wait for a few years at least. While the market will cool down later in the summer as it reaches an equilibrium that will simply slow the rate of appreciation as opposed to cause depreciation. The homes that will depreciate will do so only because they were originally listed at a ridiculous original price. If your plan is to sell, then hold the cash until we hit a point where interest rates rise significantly than that may be a good plan but it also may be quite open ended.
I have heard about the number of underwater homeowner theory, that is there is this vast number of underwater homeowners who will flood the market when they can sell and that this will be the “tsunami” of inventory. I feel this is quite incorrect for many reasons.
My point is that the market will not reverse direction strongly anytime soon for any reason except interest rates. It may not be as hot but it certainly will not reverse, at least not in a meaningful manner.
ParticipantPoway is very tight as is the rest of the I15 corridor. Anything priced accurately will sell quickly.
Participantdeadzone you forgot, them dang jews also control the media!
Participantperfectly spoken deadzone. very well done. thank you for making my point.
ParticipantYep 1031 exchanges are exactly for that purpose. We will run ours out all the way and either exchange during our life or pass them on when we croak to the kids. Currently the basis gets reset on the day you die which is fantastic for your heirs.
ParticipantPretty much the only people who include Hussein in the presidents name only do so to fan hatred by pandering to those who hate Muslims. I am not a fan of the president or his policies at all yet I don’t need to disparage him and then hide behind the fact of what his name is.
Funny because Bernanke has been talked about for years and years on this site, mostly in a critical manner and well before you came around.
Nobody had such thoughtful insight to refer to him like you do. I guess you are just way ahead of the curve.
You can play with the name all you want. Doesn’t change a thing.
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