Guidance please: emotional connection to property?

[Hannah Stern]

Have you ever had an emotional tie to property? What did you do about it? How did you weigh pros Abs cons?

I’m not *really* a newbie at managing real estate, but definitely never looked at it as an investment the way a lot of folks on here do, and exposure to this community has led me to question my mindset, so I’m looking for your thoughts, please. 

40 years ago, my mom bought a piece of garbage house in a small neighbourhood of Brooklyn, NY. She “house hacked” before it was cool and turned the upper floors of her brownstone into apartments. I grew up in it. 

In 2021, her fixed up house in Park Slope, Brooklyn would go for about $4mil, and the rent now supports her Alzheimers care. 

From what I’ve seen on here, I could do a 1031 (I think that’s what it’s called), and purchase another property, maybe a multi family somewhere, that brings in more than $18k per month… but I have these emotional ties to the house. 

Someone talk some sense into me. I imagine that if I bought the right apartment building I could probably retire next year and still have enough for the best care for her. But I love that house.

Have you ever been through selling a family home? How did you manage the sentimental side?

Thank you! 

[Dave Foster]

@Hannah Stern, Just got back from a swing to see the family farm now broken into small pieces amongst assorted relatives.  I had a crazy idea of re-assembling the pieces to recover a huge chunk of Kansas history.  While touring I realized that you really can't go back.  The place of your memories doesn't exist any more.  And those memories can only be replaced by newer memories that may not be as sweet.  I went I saw, I nostalgized and I left.  And because i did those grand memories will always burn bright in my mind untarnished.

But enough on the soft side.  That asset has some pretty large exposure to capital expense probably.  NY isn't exactly a land lords paradise now.  And grossing $18K a month on a $ 4 mil asset is next to nothing.  You can do so much better for your mom and build new memories with some repositioning of that into better performing assets.