No. of Recommendations: 1
Let's see.
Time sensitive. They all look prettier close to closing time. The closer you get to your time limit, the more pressure is on. There are 'parking lot' services available. What I found was that the realtor slacked off near the end trying to force me into something he's already found.
Taxes. The reason is to avoid Cap Gains tax. You will end up paying for it someday anyway. Plus you bring along your depreciation from the last place, therefore not getting as much depreciation in the new place as you could. Breakdowns showing how much you can make by not paying the taxes don't include this parameter in their calculations so I don't know what the savings difference is.
For instance I was hit with $4000 in accounting costs to calculate all the improvements (itemized for Uncle) in the old property calculated out to the new. IE. Stove, new cost $400, 7 years depreciation -1 year use carried to new property... times 5 units that were all upgraded before sale.
Realtor loves you because he gets two commisions ot of the deal, sell and buy.
OK I sold one dog and bought two dogs. leveraged to the max. Old one was bringing $25k after expenses. New ones are bringing in $25k after expenses PLUS pay down on loans and greater RE Value growth AND they're easier to maintain because they're more local to me.
But, I think that the realtor makes about $60k on my deals. This equals about 3 years of my growth on the properties. This compares to realty advice I've gotten. Don't buy something you're going to sell in less than 3 years because that's about the break even point of the sell costs.
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.