Getting Stepped-Up Basis in Your San Diego Home

Question: “My wife inherited a home six months ago and moved in. We don’t really like the neighborhood and would love to sell and move now. But her dad paid next to nothing for the house, so we have to wait until we’ve been here two years or we’ll pay taxes on the sale, correct?”
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How to Handle Showings with Tenants

Question: “I’d like you to handle the sale of my duplex in Clairemont. How do you handle the showings with the tenants?” Answer: Most duplexes are marketed as “show with offer.” So buyers make offers without going inside, contingent on approving the interior. If they don’t like it, they can cancel their offer, even if
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Know the Rules of a 1031 Exchange

Question: “I’d like to sell my rental and buy another property. I have 45 days after I sell to buy the next one, correct?” Answer: Not exactly. You’re talking about what’s called a 1031 exchange, named after IRS Code Section 1031. Contrary to popular belief, 1031 exchanges are fairly simple, with just a few rules
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Can You Avoid Taxes by Exchanging into a Property You Own?

Question: “An agent told me that if sell my triplex rental and put $$ into the other side of the duplex I live in that I can avoid taxes. Is that correct?” Answer: Sorry, but no. To defer your taxes, IRS Code Section 121 requires you to exchange into a property that you buy. You
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What’s the Best Way to Make Money Fast Investing in San Diego Real Estate?

Question: “What’s the best way to make money quickly investing in real estate?” Answer: Sorry, but if there were any get-rich-quick ideas that actually worked, everyone would do them…and they would no longer work. The closest thing to a useful answer I could give you is to wait until we have another downturn (2 years,
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1031 Exchange vs. Stepped Up Basis on Your San Diego Home

Question: “I inherited a condo from my dad last year and want to sell it and buy a rental property here. Should I do a 1031 tax deferred exchange?” Answer: [A 1031 exchange allows someone to sell an investment property, reinvest the proceeds in a new property, and defer some or all tax on the
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Fix-And-Flips: For Now, Just Say No

Question: “What’s the best advice you’ve ever given for flipping real estate?” Answer: Right now, it’s “DON’T DO IT.” Competition is fierce, prices are up, and you’re not in a rapidly appreciating market that will bail you out. Many professional home flippers are leaving the San Diego market or getting out of the flipping business
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Can I Use VA to Buy Investment Property?

Question: “Can I use my VA to buy an investment property?” Answer: Sorry. VA loans are only for owner-occupants. However, you can move out of the home at a later date and keep your VA loan. Verify with your lender or the VA, but I think you must intend to live there for at least
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Is Now a Good Time to Fix and Flip?

Question: “Hi Gary! We just sold our apartment building in L.A. It’s in escrow for $900,000 and we’re debating doing a 1031 exchange and buying a property here in San Diego to fix up and flip. Do you think it’s a good time right now? We’re going to net about $600,000.” Answer: A few things…
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Are 1031 Exchanges Hard to Do?

Question: “I’d like to sell my rental house here and use the money to buy to exchange into a fourplex. But I’m a little concerned about 1031 exchanges. I don’t know much about them. Are they hard to do?” Answer: Good news: 1031 tax deferred exchanges are easy! And they’re quite inexpensive to do too…usually
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