House Rich Money Poor
I own 6 investment properties and a primary residence worth more than 800K in equity, but I have no cash.
I used all the cash I have and credit cards too to keep up with the rehabs. I even took a 30k loan on my 401k.
My properties are in good shape but Im not. Im stressed about paying off all my debts and having some cash on hand.
Im considering listing at least 2 of my properties ( 3 Fam and 4 Fam) in the next few weeks. In the mean time I need some cash.
refinancing or a home equity line is an option. Any idea how I can approach a bank for a packaged loan.
how will you guys deal with this situation?
Quote:4 Fam in the area are selling up to 369,000. I see my property easily selling betwen 315K-330K. I must sell by september to keep my profits tax free since this was my primary 2 out of the last 5 years. Last time I looked at the tax code, the sale of a quad-unit property which you also occupied as your primary residence is bifurcated into two sales for tax purposes. Your tax treatment will be the sale of one primary residence unit and a separate sale of three investment units. Only one-fourth of your total sale profit can be sheltered with the capital gains exclusion on the sale of your primary residence. Capital gains taxes and depreciation recapture will apply for the three investment units that will be sold.
Consult a licensed tax professional in your area.
Quote:
On 2006-04-03 11:35, vguess99 wrote:
This will propably change my game plan if only 1/3 will benefit from the tax exclusion.
NewKid is right, you will only benefit from the portion that was your primary residence.
Run some numbers. See if getting those profits tax free are worth selling that property. Maybe not. Also, you could do a 1031 for the portion that is investment IF you want to buy another property.
I would look first at the potential of the properties that I own. Why did you buy them; have you met that/those goals. Does it make sense to sell at this time (tax, appreciation, cash flow)?