 best option with sale $$ (by bet [MA]) Jul 9, 2018 5:15 PM
 best option with sale $$ (by razorback_tim [AR]) Jul 9, 2018 5:42 PM
best option with sale $$ (by Robin [WI]) Jul 9, 2018 7:08 PM
best option with sale $$ (by AllyM [NJ]) Jul 9, 2018 7:26 PM
best option with sale $$ (by AllyM [NJ]) Jul 9, 2018 7:28 PM
best option with sale $$ (by JB [OR]) Jul 9, 2018 7:30 PM
best option with sale $$ (by Tom [FL]) Jul 9, 2018 9:05 PM
best option with sale $$ (by Steve [MA]) Jul 10, 2018 2:48 AM
best option with sale $$ (by bet [MA]) Jul 10, 2018 3:53 AM
best option with sale $$ (by S i d [MO]) Jul 10, 2018 5:42 AM
best option with sale $$ (by Robert J [CA]) Jul 10, 2018 10:05 AM
best option with sale $$ (by Robert J [CA]) Jul 10, 2018 10:06 AM
best option with sale $$ (by LindaJ [NY]) Jul 10, 2018 10:54 AM
best option with sale $$ (by Robert J [CA]) Jul 10, 2018 5:20 PM
best option with sale $$ (by bet [MA]) Jul 11, 2018 4:21 AM
best option with sale $$ (by Scott Ballet [MA]) Jul 11, 2018 6:08 PM
best option with sale $$ (by bet [MA]) Posted on: Jul 9, 2018 5:15 PM
Message:
We have 2 options that we can think of to do with the proceeds of the sale of a rental property.
1. pay off bills and put the rest in savings for cash reserves
2. do a 1031 tax exchange and have almost enough to buy a single unit rental house in a cheaper area (FL) that might rent out for as much as $1500 a month. We would own the house outright as a rental property. My spouse is 71 yrs old and this was his idea. But we are both a little stretched thin on this rental biz. Still have as many as 35 apts. Ideas, Help?? --74.104.xxx.xxx |
best option with sale $$ (by razorback_tim [AR]) Posted on: Jul 9, 2018 5:42 PM
Message:
I vote for option 1.
The only downside is the taxes.
I sold some last year. All proceeds went to paying off other notes and taxes. I’m enjoying making fewer note payments. --70.178.x.xx |
best option with sale $$ (by Robin [WI]) Posted on: Jul 9, 2018 7:08 PM
Message:
If you're 71 and have 35 rentals, you need time more than you need money. Pay your debts and enjoy the peace of mind that comes with having a reserve. --204.210.xxx.xxx |
best option with sale $$ (by AllyM [NJ]) Posted on: Jul 9, 2018 7:26 PM
Message:
Pay off bills, savings and cash reserves unless you actually want to move to Florida, soon. I am 12. A lot of stuff starts to happen around the edges that could make it hard for you to handle all that. Not necessarily fatal but real annoying like macular degeneration, hearing loss, really stiff tendons, some kind of creepy allergy or mold that closed up my ear, foot pain. Doesn't sound like you need another one at your husband's age. --73.178.xxx.xx |
best option with sale $$ (by AllyM [NJ]) Posted on: Jul 9, 2018 7:28 PM
Message:
That should read "I am 71", not twelve. --73.178.xxx.xx |
best option with sale $$ (by JB [OR]) Posted on: Jul 9, 2018 7:30 PM
Message:
Another vote for one less headache at that age. I'm not looking to add more at that stage in my life.
People do insane things to keep from paying taxes. Sometimes, the smart thing is to pay some. --50.45.xxx.xx |
best option with sale $$ (by Tom [FL]) Posted on: Jul 9, 2018 9:05 PM
Message:
35 units and at age 71. Sale 2 units a year you will be 86 when the last unit is sold.
You mentioned you are a little stretched thin on this rental biz. It may be time to unload several of the units to help resolve your concerns. PLUS WHY would you want to purchase a rental unit in Florida and you don't live there? Then have a unit to deal with renting it and dealing with a property management company. IF you plan to be snow birds then that's a different story. It may be time to unload more units and reduce your work load and stress. Then you could buy a home in Florida.
Now may be the time to unload the problem units and keep the better units.
Paying the tax burden may be your best choice.
--99.56.xx.xx |
best option with sale $$ (by Steve [MA]) Posted on: Jul 10, 2018 2:48 AM
Message:
Bet, I'm a firm believer in "Cash is King". I would take the tax hit, pay down some debt & put away some cash for easy access. Of course you could just invest in a bigger boat.(g) --71.174.xx.xx |
best option with sale $$ (by bet [MA]) Posted on: Jul 10, 2018 3:53 AM
Message:
Wow, thanks the people have spoken. We are snowbirds and already have rentals in FL. We know the investment area really well. The tax is nothing less than 10k, we wouldn't be adding more cause we'd go from a single building to another single building but go from a two family to a single house. But very enticing to reduce debt and to own one less thing. Money doesn't seem to be the issue. Just hard for an investor to actually spend the money or reinvest keeping your money working for you. thanks. BTW I'm not 71, lol --74.104.xxx.xxx |
best option with sale $$ (by S i d [MO]) Posted on: Jul 10, 2018 5:42 AM
Message:
You gave us your answer... "stretched thin".
Rentals and investing should be about more freedom and less "Stretching thin."
Sell, pay off debt, enjoy life more. --173.19.x.xxx |
best option with sale $$ (by Robert J [CA]) Posted on: Jul 10, 2018 10:05 AM
Message:
My partner is a single family house wanted to sell and keep the profits. I told my partner that our profit for all of the years of hard work is minimal after taxes and fee's. Here is my problem with a sale:
A) Federal Capital gains tax 20%
B) Sales commission 6%
C) Sales cost (transfer tax, escrow, title insurance) 2%
D) California State Tax 13.3%
E) Recapture on the depreciated taken 25%
When on adds up all of these costs, you are giving away between 30% and 45% of you profit!
So instead if I have to sell a property, I'd do a 1031 tax free exchange. Then later down the road, I'd refinance the property to the level that the RENTS cover ALL COSTS.
So instead of me getting 60% and the Taxes/Costs get 40%
My down payment into the property uses up 25% AND I walk away with 75% tax free. --47.156.xx.xx |
best option with sale $$ (by Robert J [CA]) Posted on: Jul 10, 2018 10:06 AM
Message:
AND HAVE A HOUSE THAT WILL APPRECIATE AND THE MORTGAGE WILL BE PAID BY THE TENANT. --47.156.xx.xx |
best option with sale $$ (by LindaJ [NY]) Posted on: Jul 10, 2018 10:54 AM
Message:
With all the other rentals, I vote for sell, pay down debt, pay taxes and put some away. Don't forget 1031 only defers taxes, it doesn't eliminate them and tax rates are pretty good compared to what they were. Sometimes you should use your money for something other than making money. It is useful for a lot of other things. --108.44.xx.xxx |
best option with sale $$ (by Robert J [CA]) Posted on: Jul 10, 2018 5:20 PM
Message:
When one dies, their estate get a STEP UP BASIS. So unless you Real Estate People with Children and/or Spouse have an estate above 5 million per person or 10 million per couple -- you can leave you kids your 1031 tax deferred properties and they get a new stepped up basis AND get to re-depreciate it again....So the taxes go away.......never having to be paid.............. --47.156.xx.xx |
best option with sale $$ (by bet [MA]) Posted on: Jul 11, 2018 4:21 AM
Message:
I like that idea the best, die and then you never have to pay the tax, lol --74.104.xxx.xxx |
best option with sale $$ (by Scott Ballet [MA]) Posted on: Jul 11, 2018 6:08 PM
Message:
I have done three 1031 exchanges - either to increase my income or (really) to ease the burden of being a landlord (sold the single families and turned them into higher end condos = easier tenants, less work to manage and maintain). I figure my son will benefit someday when he inherits and gets that stepped up tax basis.
--71.174.xx.x |
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