strategies to tap equity when you are nearing the end of your investing journey

[Bob Willis]

Hey All,

Quick question, this may be a standard strategy, but what is the best plan when you start thinking about retirement and you own real estate.

You can't eat equity. I know this, you know this, we all know this. So what is the answer to getting access to our equity for those of us who have some but don't really want to continue acquiring properties. I want to slow my life down a bit and enjoy the fruits of my labors (I had cancer a few years ago and I acknowledge my time to enjoy life is finite).

It occurred to me that I should just cash-out refinance my properties that are fully stabilized and that have significant equity, but that can also easily support the new debt incurred. 

For example, if you own a property with $400k in equity and you can still easily cash flow with a $300k cash out what is the down side to doing this? You just got handed $300k tax free. If you have multiple properties where you can do this, you can finance a very nice lifestyle and still retain the underlying assets.

Just curious the groups' thoughts on this?

Thanks,
Bob

[Bjorn Ahlblad]

I have not bought any new properties in years, and don't have a need to, I have almost stopped looking-that was the hardest part...........My wife and I are retired, we live within our means and we have all the money we will ever need and then some. We pay hardly any income tax via the REI program.

We intend to gift properties and money to our heirs and they can be investors and landlords or whatever they chose to do.

Not sure I really want a financial planner telling me what I am doing is screwed up, but I will listen to other RE investors and any good ideas they may wish to share. All the best!