Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
General Landlording & Rental Properties
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 25 days ago, 11/27/2024

User Stats

69
Posts
63
Votes
Tom T.
Pro Member
  • Investor
  • Cumming, GA
63
Votes |
69
Posts

End Game Strategy

Tom T.
Pro Member
  • Investor
  • Cumming, GA
Posted

Hi all,
Here is the scenario.
61 years old. Will soon look at retiring. Probably collecting social security at 62, maybe 63.
I have a rental property that is almost paid off (less than 10k away.)
FMV: 280. Purchased in 2013 for 60k. Put in 25k of renovations at start. Current rent at 1500/month. Grade B-C single family home. Taxes and Insurance at 350 month. Average maintenance and capital improvement: 350/month (4-5kyr). Vacancy is about never. Good renters.

Option A: Continue to rent.
Pros: Rent is inflation hedge.  House may continue to appreciate.
Cons: Not sure how the revenue plays against social security, Medicare & taxes. Also being a landlord. Growing tired of dealing with it. 

Option B: DSCR loan against property continue rent and hire a PM.
Pros: Loan money is tax free. Hiring a PM removes me of land lord duties.
Cons: this property is no longer a cash flowing entity. 90+% of money goes to the DSCR and expenses. 

Option C: Sell and cash out.
Pros: get 10 years rents profit in a day. No more land lord responsibilities.
Cons: Pay: Massive tax bill. Couldn't contribute to ROTH IRA in year of sale if sale this year. Any year I do this in the future there is a 2 year look back for health care cost. Plus, taxing on social security becomes an issue if I do this later.

I keep going back and forth on which avenue is best for me. 
Thoughts?


Loading replies...