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Updated 19 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?


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