Funding Your Residential Rental Purchase

Question: “I have several rentals and want to buy another property, perhaps a little house. I’d like to come up with as little cash as possible. What do I need to put down?” Answer: To buy a residential rental, you’ll need at least 20-25% down, plus closing costs of around 3%. But here’s a good
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Should You Handle Evictions Yourself or Hire a Lawyer?

Question: “I have a tenant who’s not paying the rent. Do you think I should handle the eviction myself or hire a lawyer?” Answer: Hire an attorney. Landlord/tenant law in California is very much skewed in the tenant’s favor. If you try to handle the eviction and make the tiniest mistake, your entire eviction could
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What to Do With Your San Diego Home After Improving It

Question: “I just finished renovating my condo. It has never looked this good in the 20 years I’ve owned it, so I’ve decided to keep it and rent it out…” Answer: Since you did so much to your condo, be sure to get a big security deposit from a potential tenant. You may even want
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Can You Buy Real Estate in Your IRA?

Question: “Hi Gary. Do you know if you’re allowed to buy real estate in your IRA?” Answer: Yes, we’ve helped clients do it and I’ve even done it myself a few times. You must have a self-directed retirement account with a company (aka “custodian”) that allows real estate IRAs. And you must follow the rules,
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Can You Identify More than One Property to Buy in a 1031 Exchange?

Question: “We’ll be selling a rental house in Alabama and want to buy something here doing a 1031 exchange. I know we have to designate what property we’re going to buy within 45 days of closing the Alabama house. Can we identify more than one?” Answer: Yes. Here are the 3 options you have for
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Some Finer Points of 1031 Exchanges

Question: “I sold a rental house for $400,000 and am doing a 1031 tax deferred exchange. There was no loan, so I have $375,000 in my exchange account. I’m buying in Texas and my agent there says I must buy for $400,000. Is he correct? I thought only had to use my cash from the
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Calculating Value of Multi-Unit Properties Can Be Tricky

Question: “We have four units in Ocean Beach we want to sell. It’s a house plus a triplex in back. An agent calculated the value for us as four units, but shouldn’t the value be equal to the price of a house plus the price of a triplex added together?” Answer: I wish the answer
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Beware Cost-Benefit Guides When Improving Your San Diego Home

Question: “I’ll be selling in a couple of years and am looking at investing some money in my home now so I can get a higher price when I sell. Can you direct me to a cost versus benefit analysis list for various upgrades or repairs?” Answer: There are several such lists. Here’s one from
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Are Rates Low Enough to Refinance Your San Diego Home?

Question: “Do you think rates are low enough to refinance?” Answer: I don’t know your current rate or whether you have a fixed or adjustable rate, so… If you have a fixed rate now and want another fixed rate: Depending on your loan balance and tolerance for paperwork, you want to at LEAST get a
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Can I Do a 1031 Exchange on My Vacation Condo?

Question: “Can I do a 1031 exchange on my vacation condo?” Answer: I talked with a 1031 expert said about doing an exchange with a vacation property. Here’s what she said: A second home that is not reported on Schedule E and the interest is written off against your personal income does not qualify for a
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