Posted by Andy on November 11, 2006 at 19:18:08:
I think i might have trouble selling it fast for 270k to someone else in the condition its in. It does need some work that he could easily do since he is a contractor and also owns an excavating company. That is why i’m tempted by his offer.
Trading Real Estate - Posted by Andy
Posted by Andy on November 10, 2006 at 22:43:05:
I may be posting this in the wrong place but i’ll ask anyways.
A home builder approached me about a property he had for sale that my wife and I would like to live in. He has had a hard time selling the property and wanted to know if we would be interested in trading my rental property for his house. It could be a straight trade as there both worth about 270k. I would have about a 50k gain in about 9 months on my rental and I’m assuming he has little to no gain.
Any ideas on how I can get around paying income taxes on my 50k gain? I would talk to my accountant if we got closer to pursuing this
Re: Trading Real Estate - Posted by Sailor
Posted by Sailor on November 11, 2006 at 10:10:36:
Check w/your attorney & CPA, but if this is to your advantage I
would consider a 1031 & taking the house as rental property. You
should be able to convert it to a residence @ a later date, but
exercise caution in the type of tenant you select. It would be
temporarily an inconvenience for you, but I’ve done a temporary
move & made $$$, so it was worth it to me (it was not a 1031).
However, if both properties are really worth 270k I don’t see the
advantage to you of an even exchange, especially w/out knowing
your mkt. You are making $$$ now on rents, & he is paying out
carrying co$ts every month on the SFR–think I’d want him to kick
in some caSh or @ least paper. how 'bout a porrtion of the rent
for a year or two? A 10k 2nd on the rental?
What else does he have to throw into the pot? A truck? You don’t
have to grind the guy, but think creatively. Let us know how it
works out–
Tye (who needs to swap out some stuff herself)
Re: Trading Real Estate - Posted by Andy
Posted by Andy on November 11, 2006 at 09:50:24:
Somebody mentioned a “Barter Exchange”, anybody know if this might work for my situation?