Over the years I educated myself through various means, the terms, the language, numbers, percents etc., etc., and even learn't some things about 1031 exchange and understood it perfectly that it put a smile on my face. I, no doubt, would take option 3 in a hand basket. Good job on the explanation!
My preference is actually option 2 and how it pans out in 5 years. I would like to see the outcome. Thank you so much for the info. You explained the 1031 so well. You must have been a teacher in your former life.
Hire a land use attorney to verify if it's possible. Adding an ADU is very easy in some areas but by and large, changing the land use from a single occupant dwelling to a multi occupant can be very difficult. Local governments make it VERY difficult to change zoning.
Why can we not do a combination of all 3 options? Option 1 and 2 are obviously related, you do option 1 and sell at option 3 and then do a 1031 exchange. Also can we not do option 2 (5 year accelerated depreciation), while we're at it? Also, all my research (and I'm not am expert so pls excuse if I'm about to say something stupid) says that I have to put ALL (profit + loan amount) the money I got selling the house in the 1031 exchange in order to avoid capital gains taxes?
Why? One of our Proteges near Charlotte NC just put a 12 unit multi-family property under contract for $990,000. Perhaps you are lost on HOW to find deals like that?
@@CommercialPropertyAdvisors I understand lower-income areas like NC have low cost per unit but 1M buys you a run-down two family (if you’re lucky) anywhere within a 200 mile radius of where I am located. I understand the idea of long distance investing however personally, if I owned an asset that relies on people I couldn’t even meet in person and where I’d need to hop on a plane to get down to the property in worst case scenario, seems like a nightmare.
@@thousandmile9477 There are parts of the US that have much higher cost-per-unit multifamily properties than others. You have to invest in areas with the highest ROI.
