Selling 2 Bed Room Attached Condo @Portola Springs (Possibilities)?

best_potsticker_in_town said:
USCTrojanCPA said:
best_potsticker_in_town said:
With regard to selling costs, 6% seems rare these days. Most commonly I see 5%, 2.5% split to each side. If selling agent reps the buyer, then it's 4% total. I would even try to negotiate a commission structure that increases if it sells above list and decreases if it sells below. Just more alignment for the client's goals.
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Funny that you mention that because that's how I've been structuring my listing agent commission from the start.  I call it the "pay for performance" model. :D
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;) I would only work w/ an Agent that offers this structure. Consider the scenario of listing a home for $525k. If the home is realistically valued at $510k and a low-ball offer comes in at $500k...under a traditional commission structure most Agents aren't going to fight for an extra $10k for you - that's only $250 more in commission for them. I'd never want to be in that position as a seller - but the caveat here is you have to listen to the agent's expertise on list price and not let emotion get in the way.
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I've never heard of any agent offering a variable commission, I might be the only one.  My sellers find it to be very unique and refreshing and feel that it better aligns my commission with their interest of getting the highest price possible for their home...a true win-win.
 
dream16 - if you're serious about selling, maybe you should do a swap to The Rowe or The Courts in Baker Ranch. I know a lot of folks aren't fans of LF here, but no MR is pretty attractive. The area and schools are more than acceptable too. Something to consider...
 
BangBros said:
dream16, why are you selling it.  Just rent that shit out.  Rental market is hot hot hot in Irvine.  You need to rent to pregnant anchor baby mamas.
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Luckily i have great tenants who will happily extend their yearly lease and are keeping the condo in good shape. I am under negative cash flow and my reason of buying this investment/(possible primary residence in future) was never to sell it. If i can increase the rent by 5-8% at lease renewal, along with the reality check (hopefully i get a big tax return) that i will get after filing taxes for 2016 -- i think i might be better off in keeping this condo and never selling it.
 
dream16 said:
BangBros said:
dream16, why are you selling it.  Just rent that shit out.  Rental market is hot hot hot in Irvine.  You need to rent to pregnant anchor baby mamas.
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Luckily i have great tenants who will happily extend their yearly lease and are keeping the condo in good shape. I am under negative cash flow and my reason of buying this investment/(possible primary residence in future) was never to sell it. If i can increase the rent by 5-8% at lease renewal, along with the reality check (hopefully i get a big tax return) that i will get after filing taxes for 2016 -- i think i might be better off in keeping this condo and never selling it.
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Remember that real estate losses are considered passive losses.  You won't be getting a huge refund if your MAGI is >100k and you won't get any benefit if it's > 150k. 
 
BangBros said:
haha, sounds like  Hillary flip-flopper. 

my advice.  Float that home and keep it.  You'll never be able to buy it again at the price you paid, for a very, long time.  You didn't hear this from me, but I'll say it again: "mainland chinese anchor baby mamas"
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It's a tri-level condo.  This is the absolute worst configuration for pregnant women or new mothers.  What you want are properties with large lots so you can expand it out with additional rooms.
 
woodburyowner said:
BangBros said:
haha, sounds like  Hillary flip-flopper. 

my advice.  Float that home and keep it.  You'll never be able to buy it again at the price you paid, for a very, long time.  You didn't hear this from me, but I'll say it again: "mainland chinese anchor baby mamas"
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It's a tri-level condo.  This is the absolute worst configuration for pregnant women or new mothers.  What you want are properties with large lots so you can expand it out with additional rooms.
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The voice of reason = woodbury
 
BangBros said:
woodburyowner said:
Remember that real estate losses are considered passive losses.  You won't be getting a huge refund if your MAGI is >100k and you won't get any benefit if it's > 150k.
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But you could still write-off and deduct pretty much nearly all the rent you collected no?  It's just the difference part where you have to "float" it, you can't write that off?

Assuming PITI, HOA, MR was $2500.  Rent is $2000.  He can write off nearly $2000 but the $500, he'll have to float it and pay the usual tax based on his tax bracket.
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For rentals you write off EVERYTHING (interest, property tax, mello, HOA, insurance, repairs/maintenance, as well as depreciation exp) but NOT principal.  You have to pay back the tax on depreciation (called depreciation recapture tax...at either 25% or 28%) whether you have a gain or loss on the sale.
 
Can someone please explain what depreciation recapture (and its associated tax)?  I'm seeing the term thrown around but can't seem to get a firm grip on what it is. 

For instance, does an investment property get this tax assessed whether the property was sold at a gain OR a loss?  how does that work?
 
it's pretty bs.  uncle sam will recapture that depreciation deduction when you sell your investment property even if you didn't claim depreciation on your taxes.  just learned that last week. 

I didnt claim depreciation on purpose for the last 10 years because I didn't want to lower my basis when I sell my investment property.  so i thought.  fml
 
tdg said:
it's pretty bs.  uncle sam will recapture that depreciation deduction when you sell your investment property even if you didn't claim depreciation on your taxes.  just learned that last week. 

I didnt claim depreciation on purpose for the last 10 years because I didn't want to lower my basis when I sell my investment property.  so i thought.  fml
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It's rigged
 
I know this thread got hijacked pretty bad (Nice house btw)

About to do my taxes, anyone know if the 1031 accommodator fees be expensed? How about title escrow fees?  Essentially your final settlement statement, there's a bunch of fees like transfer fees for hoa/title/recording charges and various escrow chargeslike wire fee/grant deed.  Also, read somewhere that commission for real estate can also be expensed if it's investment property

Any assistance will help  8)
 
SoclosetoIrvine said:
I know this thread got hijacked pretty bad (Nice house btw)

About to do my taxes, anyone know if the 1031 accommodator fees be expensed? How about title escrow fees?  Essentially your final settlement statement, there's a bunch of fees like transfer fees for hoa/title/recording charges and various escrow chargeslike wire fee/grant deed.  Also, read somewhere that commission for real estate can also be expensed if it's investment property

Any assistance will help  8)
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Fees and commissions increase the cost basis of the home, which in turn would reduce the amount of capital gain. Usually any fees related to a home sale are acceptable - title search fee, escrow fee, notary, etc.
 
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