Tag Archives: investment property

Does a 4 unit residentiential building, like a four-plex qualify for a 1031 exchange?

The immediate answer you will no doubt get from your tax advisor is “it depends”, needing of course more information to answer correctly. Assuming the 4-plex is held for the commercial land near Gateway Airportproductive use in a trade or business or for investment, the answer is, a 4-Plex should qualify for 1031 exchange, providing you are exchanging it for “like kind” property ( not same kind ). This can be any type of residential, commercial, land, multi-family, etc., investment real estate
So yes you can exchange a house you bought a year or 2 years ago that has seen a 30+% increase in value now for a multifamily or multi tenant office building ( which has not seen that % increase in value yet ), they are both “real” property, used for productive use or for investment.
You should talk with your tax adviser to determine if your property would qualify for a 1031 exchange based on the details of your personal situation.
Also since because of the timing involved in a 1031 exchange you must contact a qualified intermediary and set up an exchange account before the relinquished property ( being sold ) closes, as intermediary must hold the funds, you then must identify and notify the intermediary of the replacement property/properties by midnight of the 45th day after the relinquished property is transferred.
The replacement property must be revived (close) by the exchanger within 180 days from the relinquished property, so it is equality important to talk with a qualified intermediary after talking with your tax adviser before selling the relinquished property or buying replacement property.
You cannot do a 1031 exchange on your personal residence since the primary purpose of the property is for personal use. If you have a multi-family investment property and live in one of the units to manage it, that creates a different set of rules and may qualify for 1031 exchange.

 

This information is for informational purpose and not intended to be investment or tax advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

So are Multifamily Apartment Buildings the Best Commercial Real Estate Investment Now?

So far, prices for Multifamily Apartment Buildings have only increased slightly from a year multi family apartment buildingago, unlike single family homes prices, which have increased by over 30% from a year ago in the Phoenix metro area, as detailed in a previous post.
The demand has increased, partially because of the many former homeowners that have short saled or lost their homes in foreclosure in past few years are now living in apartments buildings.
But also the poor economy seems to have caused a major shift in home ownership, many young people are opting to rent apartments longer, rather than buy, partly because of down payment requirements or ability to get a loan, but also there are a larger percentage of single people in this age group.
The Millennials or Echo Boomers, a group 80 million strong will have a huge impact on housing for years to come and present a huge rental opportunity for landlords.
This is a group that values higher education, perhaps even over home ownership, they don’t necessarily feel the need to own a home right now, but instead may prefer to have a newer modern apartment they rent, with amenities like a gym, instead of a place they own and would have to spend their money and weekends fixing up.
They have never had a phone of their own that they didn’t carry with them, they have grown up with technology, which is important to keep in mind if you are an Apartment Building owner interested in targeting this massive generation for their housing needs.
Marketing your rental property to this generation will need to be done online with video, highlighting features like close proximity to retail and entertainment centers, and public transportation. Pointing out the energy-efficient systems you in the properties and how much the tenants will save on their utility bill.
This group is young and their needs and desires are no doubt ever changing, but now and in the foreseeable future owning Multifamily Investment property, to provide housing for this huge generation of young people may be worth considering.

 

 

 

 

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.

So is it a good time to buy Investment Real Estate yet?

People often try to figure out when is the best time to buy investment property, like someone has a crystal ball or something. I think it would depend on if you are interested speculating for a short time or interested in a long term real estate investment. In my opinion if you want to speculate there is always Vegas, if you are interested in a long term real estate investment, since historically real estate has gone up in value over time, that would make it always a good time to invest in real estate, just meaning some times the return on your money would take longer than others.

For those who want their ROI a little sooner than latter I read a report compiled by U-Haul today, According to U-Haul the report calculated the growth cities based on the percentage of inbound moves vs. outbound moves. The report was compiled based on nationwide trends in cities if all sizes and no surprise to anyone living in the Phoenix area, both Phoenix and Mesa made the list of positive migration.

So maybe you want to speculate in investment property, buying real estate now that inventory levels are extremely low, more people are moving into than out of the Phoenix area and homes are selling for less per square foot now than they have for years.

Or you are interested in a buy and hold strategy interested in positive cash flow every month, favorable tax benefits and appreciation over time, making now as good a time as any to buy investment property.

Short Sale homes in Johnson Ranch – San Tan Valley AZ homes for Sale

Short Sale homes in Johnson Ranch – San Tan Valley AZ homes for Sale

Johnson Ranch is a master planed community in the San Tan Valley AZ, just south of Queen Creek AZ.
The Johnson Ranch community not only offers affordable homes, but many of the amenities include: community recreation centers, playgrounds, pools, spas, lighted basketball/tennis courts as we as the Johnson Ranch golf course, a 18 hole championship golf course open the the public. Johnson Ranch homes for sale are not only affordable but, homes for sale in Johnson Ranch, offer a genuine value with the many amenities, designed for an active Family lifestyle.
Whether you are looking for a personal residence and/or investment property to produce passive income for you through positive cash flow, you owe it to yourself to check out the Johnson Ranch homes for sale today.


To search for Bank owned Johnson Ranch homes.
To search for Short Sale Johnson Ranch homes.

This information is for informational purpose and not intended to be investment advise, and should be explained to you in detail. You should always feel free to consult an attorney and/or tax adviser to obtain further information you deem necessary. I want you to be prepared.