<p>Update - the adjustors got the insurance company to agree to the full coverage of the policy. We got a reduction on the adjustor’s fee because one of them is a family friend. In addition, we will probably be able to get additional $$ for the lost rent under the “lost rent” part of the policy. Since they handled everything and we didn’t have to fight tooth and nail (literally), we feel that it was $ well spent. </p>
<p>Now we have to decide whether to fix the unit or sell the whole property and use the funds for something else. That’s where things could get sticky…</p>
<p>Congrats on reaching such a prompt settlement with so little strife. That’s always such a relief! I have never hired an adjuster for any claims I have made to date, but have never had a fire.</p>
<p>We don’t require the tenants to have fire insurance–perhaps we should. Our insurance agent may help advise us on this.</p>
<p>Sylvan now updates us, and brings up a good point that had not yet been mentioned here. While it turns out Sylvan mentions no fight occurred, a quick view might indicate there was no need to hire an advocate; although no one can really say what didn’t happen.
However, the new point being brought up is that Sylvan had a largely worry free- as much as can be- by hiring an advocate. Letting someone else handle this may have cost some money, but it saved some peace of mind, and that helps too.
Also- now we are told the advocate is a family friend and discounted the service. We had not been aware of that before, when we were asked our opinion on hiring an advocate.</p>
<p>Latest…After getting the check from the insurance company, H put the property in the paper. He got a lot of calls and 2 offers came in within a week. The bidders are battling over it, but we have apparently come to terms with one group and are working on a contract. If things go as planned, we will end up with a tidy sum. </p>
<p>In the meantime we are scouring the market for another property to transfer our equity into so we don’t end up having to pay capital gains tax on this one this year or next year. Not sure if we can get that to work out or not given the complexities of the situation.</p>
<p>^ Are you trying to do a 1031 exchange? Use care when selecting the holding company. There was a case a few years ago where one of the largest 1031 companies declared bankruptcy when the meltdown in credit swaps happened. They had been parking the money in those instead of regular bonds to make extra on the float, and thousands of people got screwed out of their money.</p>
<p>You might be better off taking the capital gains hit this year (assuming it is LTCG). The tax rate will probably never be this low again.</p>
<p>^NRE - it’s really complicated, because we already have the insurance settlement in our account and the buyers are giving us $5K and we are holding a mortgage on the rest for 4 years. I don’t even know where to begin taxwise. We are hoping we can talk BIL into reinvesting the money in another income property, but I don’t know where that will stand if we have to pay a big chunk of it in taxes. </p>
<p>Che mess…nonetheless, we’re glad enough to think of walking away from the fire damaged unit.</p>
<p>(re post 25) Yes, you did mention it is someone you know. But unless i read your post 9 too quickly, you did not mention that it was a family friend that would be discounting their service.
I know a lot of people that I may not consider family friends; and who knows if they will discount their service to me?</p>