Michigan Real Estate Talk

How do I figure capital gains and state tax on the sale of a vacation home in Michigan?

I purchased a vacation home from my grandparents in Michigan in 2001 for $60,000 (Probably $150K under the market). I have made some small improvements to the property (approx $10K). My wife and I have never declared this as our primary home. There is an estimated $10K in personal property being sold in this transaction. I am in the process of selling the property for $370,000.

I want to make sure that I hold back enough funds for all the tax consequences that we will see in the next year. I am curious if I have to pay income tax in Michigan or my home state? How would this sale affect our federal filing? Capital Gains, Alternative minimum tax??

How much do you think we should save back for Uncle Sam?

Why don’t you do a IRC 1031 exchange. You need to ID the property
you wish to acquire in 180 days from the date you opened an escrow.
In this 1031 you need a reputable title company or if in Michigan,a good real estate attorney. Then the last two years of the five, you can make the acquired property as your principal home.
Just complete the front and back of the 1040 sch D and you will figure your cap gain tax. See if you can sell the house under an installment sale since you can spread the cap gain on the principal over the life of the note and thus pay the cap gain tax in cheaper dollars (see form 6252)
For alt min tax complete form 6251

Posted in Michigan Homes for Sale | 2 Comments »

Are there tornadoes in Ann Arbor Michigan?

I am moving to Ann Arbor this year and am interested in buying a module/manufactured home. Someone mentioned that this may be a bad idea because I will need a basement if there are tornadoes? True or False? Is this something that is common?

Skittles is right… That’s one of the great things about Michigan – we don’t really have to put up with weather phenomenons. I remember a spate of tornadoes going through 10-15 years ago, and there’s been the occasional sighting since. Severe thunderstorms are much more common than tornadoes, but even those aren’t too frequent. We get our share of high winds and blizzards, too, but those are also infrequent in the lower half of the Lower Peninsula. Weather-wise, Michigan is a great place to be.

As for having a basement: I’d think you’d be fine. There are many traditionally constructed houses without basements spread around the state. Better safe than sorry – No matter what state you’re in, you should be aware of the weather and make sure you tune into the forecast if it looks iffy outside (such as an oddly green sky). If a tornado does happen, you can go into a closet.

Welcome to Michigan!

Posted in Ann Arbor Homes | 12 Comments »

Subject 2 real estate investment information?

Can anyone with experience in Subject 2 residential real estate investin please give me more information on it or some good links for some info. I have to move and this may be my best option, but I want to make sure because if it sounds to good to be true, it probably is. Well, if you can help, that would be great!

Don’t buy that way. Don’t sell that way. The ONLY person that makes out on that sale is the real estate salesperson. If you don’t have enough equity to sell on a new loan, rent to someone with good credit until you do.

Posted in Real Estate Information | 1 Comment »

Does Michigan include basements when calculating the square footage of their homes?

Basically, I am trying to find out, when a home is up for sale in Detroit, and they say it is 4,000 square, do they include the square footage in the basement, finished or not finished. I know some states don’t include the basement finished or unfinished.

They should never include the basement as sq,footage.

The most it should say is finished basement.

Posted in Michigan Homes for Sale | 2 Comments »

Does anyone have a good recipe for butternut squash enchiladas, like the dish from Seva in Ann Arbor?

I love the Butternut Squash Enchilada’s from Seva restaurant in Ann Arbor. I am trying to recreate them at home. Please send me recipes! Thanks.

I found 2 recipes…I am gonna have to try these!

Butternut Squash Enchiladas with Salsa Verde – Makes 8 servings.
1 package (16 oz.) diced peeled butternut squash, or 1 1/4 lb. squash, seeded, peeled and diced
Canola oil spray
1 can (15.5 oz.) pinto beans, rinsed and drained
3/4 cup (3 oz.) crumbled reduced-fat feta cheese, divided
8 large (about 7-inch) corn tortillas
1 jar (16 oz.) salsa verde
Salt and freshly ground black pepper, to taste
1/4 cup chopped fresh cilantro leaves, for garnish (optional)
Place squash in medium saucepan. Add 1 cup water. Cover pot tightly, and place over medium-high heat. Cook until squash is tender but not mushy, 12-15 minutes, depending on size of cubes. Drain squash, and set aside.

Meanwhile, preheat oven to 350 degrees. Select a baking dish just large enough to hold the eight tortillas, folded over and slightly overlapping, so that they fit snuggly in the dish. (You may want to “test” and see if the baking dish is the proper size by arranging unfilled, folded tortillas in it, as they would be once filled and ready to bake.) using the canola oil spray, lightly coat the interior of the baking dish and set aside.
Place beans in mixing bowl. Using fork, partially mash beans. Add squash and blend, leaving mixture coarsely mashed, with some beans still whole. Mix in 1/2 cup of the cheese. Season filling to taste with salt and pepper.
Coat a tortilla on both sides with cooking spray. Lay it on a plate. Spoon 3/4 cup of filling on one half of the tortilla. Fold tortilla in half over filling. Set it at one end of the baking dish. Repeat, placing filled tortillas so they overlap, filling baking dish tightly. Pour puréed sauce over assembled enchiladas. Sprinkle remaining cheese over sauce. Cover pan with foil.
Bake enchiladas about 30 minutes, until they are heated through and tortillas are soft. Uncover and serve garnished with cilantro, accompanied by cooked brown rice, if desired.

Butternut Squash Enchiladas
Squash Filling
1 med butternut or acorn squash (2 lb)
1 tbl olive oil
1 clove garlic, minced
1/4 cup yellow onion, diced
1/2 cup fresh corn, uncooked (frozen, ok)
3 cups monterey jack cheese, grated
1 doz corn tortillas
1/3 cup vegtable oil

To Prepare the Squash Filling
Preheat oven to 400°. Cut squash in half lengthwise and clean out seeds Place in small baking dish cut side up in one half inch of water and cook until soft (40-50 minutes). Let cool and spoon out meat. Heat olive oil in a large sauté pan over medium heat. Add garlic, onions, and sauté 2-3 minutes until translucent. Mix in squash and corn and set aside.

To Assemble the Enchiladas
Heat vegetable oil over high heat and fry tortillas individually until soft. Pat dry with a paper towel. Grate cheeses. Place a spoon or two of squash mixture on a tortilla along with some cheese, roll up and place into a 9×13 baking dish. Repeat, placing enchiladas side by side, until baking dish is full. Top enchiladas with sauce and a little cheese and bake at 350° for 15-20 minutes.

Posted in Ann Arbor Homes | 1 Comment »

where can I get some more information about real estate biusness in USA?

what criteria do you need to have to open a real estate office in USA?

First of all you will need a license to operate as a Realtor, then in order to open an office you will need experience ( where I live in Florida it’s a year but you’ll need to check each individual states criteria ).

the best bet is to go see a couple of Realtors in your area and ask them the names of some decent Realtor schools in the area.

Good luck with it.

Posted in Real Estate Information | 5 Comments »

How much does it cost to add a porch to one of those old homes in dearborn, Michigan?

THe homes are all small and at least 50 years old. They need some curb appeal sometimes and many people add those covered areas to their front door. How much does that set one back and can it be recooped in the sale of the house?

I’m in Wayne, MI. I am assuming that you’re in historic Dearborn? Than you will absolutely recoupel the money in a resale. I would call Killer Decks in Wayne, or Home Depot, or Lowes and have some people out to give some esitmates.

Posted in Michigan Homes for Sale | 3 Comments »

what was the name of a unwed mothers home in Ann arbor, Mi in the year 1967?

looking for niece that was adopted from an unwed mothers home in Ann Arbor , MI. Date of birth 2/18/1967

I know there was a Florence Crittenton Maternity home & hospital, and also a Booth Hospital (Salvation Army did a lot of adoptions then) Also, there may have been a Catholic Charities Agency there. You can contact the Ann Arbor diocese to get information about that.

Here is a link to hospitals that may be helpful. They may know which maternity homes & agencies were common then. I know one of our first Moms here on YA is from Michigan, she may be of more help.

http://www.migenweb.net/wayne/wayhospitals.htm

Posted in Ann Arbor Homes | 1 Comment »

Real estate investment information?

I’m 20 years old and I’m looking for sources of information for buying real estate properties and renting them out. I’ve read many books and purchased many programs on the subject, but am looking for the complete deal. With subjects such as insurance, property management companies, loans, etc… I need a really technical resource with not a lot of fluff. The real meat and potatoes of the business. Thanks for the help.
Where do you find a mentor?

You do not need a single resource. You need a team of resources. A good mortgage broker will be able to tell you what you need to know and what you will need in terms of money to buy your homes. A good Realtor will be able to help you to understand what to look for and expect from a rental home. Your Realtor may double as your Property Manager or you may want to use another company or even go it alone. If you choose the last option you will need good repairmen that you can trust. You will need an insurance agent who has good rates and customer service. You will need to learn the landlord and tenant laws of your area. Rentals can be a very profitable business if managed correctly, and if you have been doing all the research you say you have then you are well on your way to understanding that.

I can give you some basic info here about the Realtor side, and if you have any specific questions or need clarification on anything you can feel free to email me. But the basics are that you will need to put some money down, so start saving now. Probably about 20%. Also you need to understand the difference between looking for a home to live in and a home to rent out. You are looking for two completely different types of home. For a rental you are not looking for the "just remodeled, granite countertop & stainless appliances" homes. You need a sound structure that will be as low maintenance as you can find. Ugly is o.k. Research the market you want to rent in. What are homes selling for in that market? How much are they renting for? What are the property taxes? All of that will factor into how much profit you will make. You should also have a budget for vacancies and repairs. Plan for the worst and hope for the best.

Hope it helps,

Josh

Posted in Real Estate Information | 2 Comments »

Easiest way to find lake cottages for sale in ohio, michigan or indiana?

Does anyone have any good ideas on how to find cottages for sale in Ohio, Michigan or Indiana? I’ve tried web searches and I’ve tried MLS searches but end up with a bunch of stuff I don’t want. I’m trying to find a website or a magazine that deals only with lake homes.

Try this!

www.lakehouse.com

Posted in Michigan Homes for Sale | 3 Comments »