Official Gramps' Memorial Eternal OT Thread

#7,402
#7,402
BearCat204 said:
Feeling like a real estate boss this morning. Back in 2013, I bought a condo here for 85k, needed a lot of work and it was a quick sale because it was from a lady who had passed away and the kids were wanting money quick. So purchased it fo 85k and put 30k into it with new granite countertops, painting, new floors, and other things. Put it on the market about a month ago due to moving out of it and buying a new house close by. Anyway, showed it to a couple of guys this weekend and they offered me a cash offer of 165k. So currently walking with 50k profit :) Might try and do this again, but not sure if I will get this lucky next time lol.
Click to expand...

It's a great feeling.

Congrats.
 
#7,404
#7,404
McDad said:
Primary residence should be exempt from capital gains up to 250k for single or 500k for married.
If tax guy has different info plz lemme know.
Click to expand...

Thanks. Very valuable info.

We bought a millhouse built in 1916..1400sf 2 story, "4 on 4" floorplan with 3 beds and 1 bath upstairs, LR, DR, kitchen, laundry downstairs. I paid 67k because itbwas very run down. With my 2 hands, I replaced all the windows, the roof, siding, remodeled the kitchen (granite, tile) and remodeled the bathroom. Wife says it will sell for about 125k now, and we owe about 60k. Plan to build a new house, her brother (the decent one) and his partner build houses locally in the 150 to 200k range. Looks like we can build a 150k house for 90 to 95k, with me doing some of the work. Would like to put about 40k down on a 95k mortgage and maybe finance for 15 years instead of 30...I didn't know how the taxes worked out on that though...it is our primary home...any info you have would be great.
 
#7,405
#7,405
marcusluvsvols said:
Thanks. Very valuable info.

We bought a millhouse built in 1916..1400sf 2 story, "4 on 4" floorplan with 3 beds and 1 bath upstairs, LR, DR, kitchen, laundry downstairs. I paid 67k because itbwas very run down. With my 2 hands, I replaced all the windows, the roof, siding, remodeled the kitchen (granite, tile) and remodeled the bathroom. Wife says it will sell for about 125k now, and we owe about 60k. Plan to build a new house, her brother (the decent one) and his partner build houses locally in the 150 to 200k range. Looks like we can build a 150k house for 90 to 95k, with me doing some of the work. Would like to put about 40k down on a 95k mortgage and maybe finance for 15 years instead of 30...I didn't know how the taxes worked out on that though...it is our primary home...any info you have would be great.
Click to expand...

If I were in your position with occupation and connections in the trades, I would build every 2 or 3 years up till about 500k value. Your cost is about 350k. Make 150k every two years tax free.
 
#7,406
#7,406
McDad said:
If I were in your position with occupation and connections in the trades, I would build every 2 or 3 years up till about 500k value. Your cost is about 350k. Make 150k every two years tax free.
Click to expand...
Depends upon your location. Nobody builds spec houses for more than about $250,000 in my area, and they work on way less than a 30% profit, or the 40+% markup. A $500,000 house sits on the market for over 6 months here. You need to be in an area where people are moving in for work.

We have a few retiring here, but they are coming here because they are cheap to begin with.
 
#7,407
#7,407
1972 Grad said:
Depends upon your location. Nobody builds spec houses for more than about $250,000 in my area, and they work on way less than a 30% profit, or the 40+% markup. A $500,000 house sits on the market for over 6 months here. You need to be in an area where people are moving in for work.

We have a few retiring here, but they are coming here because they are cheap to begin with.
Click to expand...

I just learned that Florida can raise prop tax 20% max on a homeowner with no reason/warning.

My friend is moving due to it.
 
#7,408
#7,408
McDad said:
I just learned that Florida can raise prop tax 20% max on a homeowner with no reason/warning.

My friend is moving due to it.
Click to expand...
Did he challenge it? We did and won. They assess your house from the street. They have no idea what the inside looks like. My house is a disaster. I hate it so much that the next hurricane that rolls thru I am leaving the windows open. When they tried to raise mine by something like 15% years ago, the wife went down and challenged it. When they came out and looked, they said, "Um... yeah. You're right. We'll leave it as is".
 
#7,409
#7,409
McDad said:
If I were in your position with occupation and connections in the trades, I would build every 2 or 3 years up till about 500k value. Your cost is about 350k. Make 150k every two years tax free.
Click to expand...
If you have a ROTH IRA, you can establish what is called a 'self directed' IRA. You can do anything inside that except buy collectibles like stamps and coins. If you buy a house and rent it, all the rent is tax free. It has to stay inside the ROTH however. The downside is that you pretty much have to pay cash for the house because you also cannot deduct any interest payments or maintenance. But everything about that house is tax free. Capital gains realized when you sell are tax free, etc etc etc.

Consult your tax adviser, I am a member of a group that makes notoriously bad financial decisions.
 
#7,410
#7,410
Thanks for the tax heads up :). Wasn't sure because it ceased to be my primary a few months ago when I purchased my new home.
 
#7,411
#7,411
SpaceCoastVol said:
Did he challenge it? We did and won. They assess your house from the street. They have no idea what the inside looks like. My house is a disaster. I hate it so much that the next hurricane that rolls thru I am leaving the windows open. When they tried to raise mine by something like 15% years ago, the wife went down and challenged it. When they came out and looked, they said, "Um... yeah. You're right. We'll leave it as is".
Click to expand...

He hired an attorney who checked into it. Said he is SOL.
 
#7,416
#7,416
I just pulled a McDad level pun at lunch.

We had roast beef sandwiches (which were awesome) and one of the folks at the table said "I don't eat beef."

I told her it was a misteak.
 
  • Like
Reactions: 1 person
#7,418
#7,418
SpaceCoastVol said:
Did he challenge it? We did and won. They assess your house from the street. They have no idea what the inside looks like. My house is a disaster. I hate it so much that the next hurricane that rolls thru I am leaving the windows open. When they tried to raise mine by something like 15% years ago, the wife went down and challenged it. When they came out and looked, they said, "Um... yeah. You're right. We'll leave it as is".
Click to expand...

They did this where we live, but we didn't know we could challenge it. Wish we had known, they actually drive around looking at houses from the street and raise property taxes/tax value...crazy.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top