John T. Reed’s news blog

A REDDIT real estate investing group member posted this question:.Plan to buy a house that needs mainly cosmetic work with a FHA or conventional loan to put 3.5 - 5% down. Live in the house for 2 years while rehabbing. Then sell it avoiding any capital gains tax and use the profit and savings over two years for a 2-4 unit house hack. If market tanks then backup plan would be to rent it and buy another primary residence with savings over the two years, or just live in the house while saving money. The primary point of doin this...

A REDDIT real estate investing member posted this question..“I am planning on purchasing my first property. I am a registered nurse but have always dreamed of getting into real estate investing. I have found a triplex and am wondering if it would be a good investment. It is $180,000 in Arkansas. All three units total are bringing in $2000/month for the current owner. It doesn’t need any renovations at the moment. I plan on putting $15,000 down. Insurance is roughly $2000 annually. Taxes roughly $2400 annually. Renters pay utilities. The triplex is 15-45minutes away from several cities including Little Rock,...

A REDDIT real estate investing member posted this request for help. . “I'm in the process of purchasing my first real estate property in California, priced at $650k, and I've run into a somewhat unique and frustrating challenge. The seller and I agreed on a deal where $130k of the payment would be made in cryptocurrency. However, when we approached the bank to handle the transaction, they informed us that an Anti-Money Laundering (AML) check is required for the crypto portion of the payment. “This has put me in a difficult position. I completely understand the necessity of AML regulations...

A REDDIT real estate investing member posted this:. I bought a principal residence in 2016 for about $300k. Now worth about $500k, and has a tenant. My understanding is that I can avoid capital gains on up to $250k if I've lived in the house for 3 of the past 5 years.  Of course, I have a 2.25% mortgage I don't want to lose. My plan is to create an LLC, contribute $200k to the LLC, and then buy the house for the fair market value of $500k. I would transfer the title through a closing attorney. I would continue...

Assuming a low-interest mortgage. Is that a good idea? .There is no advantage to a home buyer to taking over an existing low-interest mortgage. Why not? The house will sell for a higher price if it has a low-interest mortgage. So what you don’t pay interest you WILL pay in a bigger down payment and a higher price than if the home did NOT have a low-interest mortgage. It all comes out in the wash.. Is there an advantage for the seller of such a house to a buyer who assumes the low interest mortgage? Yes. Now I read that...