Analyzing Returns on Properties held for 20+ Years

[Austin Petrie]

Hey all,

So my grandfather started investing in real estate over 30 years ago and has not sold a single property. I'm currently trying to analyze how well each of these properties performs year to year to see if any are worth selling or in need of some tlc to get them to perform better. Since many of the properties have been held for 20+ years, they have appreciated greatly and are owned free and clear, are there any different metrics to consider beyond things like CCR, IRR, NPV, etc.? And is there any reason why any of those metrics I mentioned shouldn't be used for properties held this long?

[Jay Hinrichs]

Austin the bigger thing to do here Is estate planning.. this is a gold mine.. I am sure you understand that..

so it really depends on where he lives and inheritant tax.. most folks like this want to hand this stuff down so you want to get with a good CPA and get your tax planning done.. makes not difference if its making 10% like @Thomas S. Is alluding to with huge valuations in Denver I suspect its not..  but with millions up millions of free and clear property don't go chasing yield.. no need to do that.. just make sure the estate does not get taxed to death..  If the long range goal is to hand it down  and there are multiple heirs.. maybe his vision is giving a property or two to each of them. And of course done correctly you get stepped up basis for tax purposes then you can sell and not pay huge gains.. although you will have to talk to CPA about recapture.. or you do what a lot of folks do and 1031.. or you just live with the comfort of knowing you have millions upon millions of free and clear real estate. your grand dad is one smart guy ..