Should I liquidate my stocks to invest in a duplex?

[Rouanne Garcia]

Hi everyone, my name is Rouanne, I'm a newbie so bear with me, I currently hold 100k in stocks and 75k in IRA. I invested in the tech sector 3 years ago so they are considered long term investments. I want to liquidate my stocks in order to invest in a duplex or two in GA, I'm CA based. I chose GA because I have a family friend that sells off market. I've already used the rental calculator and the numbers are great. I won't touch my IRA but I'm debating whether I should sell all my stocks and go full force in real estate investing or will the capital gains tax hurt me? Please help with suggestions/advice. Thank you!

[Jaron Walling]

You should not liquidate all of your stocks to buy real estate. Never put all the eggs in a basket and hope it works out.

I'd figure out the tax consequences of selling 50-65% of your stocks and find a realistic budget (PP + rehab) for a duplex. Then I'd do more market research and focus on neighborhoods where local investors are buying, selling, and flipping. It's tough to reinvent the wheel on the first deal. Find something that cash-flows or something with less risk. Extensive rehab = risk. Avoid that if you can you'll be on the right track. The first one is the hardest.