My Retirement Plan

[Dale Jackson]

Below is an idea I’ve been kicking around. I’d appreciate any feedback...

In general my retirement plan is to sequentially buy homes on a 24 month cycle for myself, my son and his wife and and my daughter. The goal is to do this profitably and tax free.

Background:

I’ve done two profitable, owner-occupied, “slow” flips. I like the process and plan to ramp this up with 2-3 more before I retire in a 2-3 years.

My Retirement Plan:

A typical scenario would be for one of my kids to buy a house (I’d help with the down payment and renovation costs). I’d renovate it while they lived in my place. Once I’m done, they’d move in and live in it for 2 years. They would then sell it at (hopefully) a profit and be able to exclude the gain from their taxes.

In a perfect world, we’d do this sequentially so that I’d always have a project and we’d be cycling through the houses (son - daughter - my own place) so that each of us is building equity tax free.

The buying decision is theirs - they have to live there and pay the mortgage. Also, the selling decision is theirs - 2 years is the minimum to exclude the gain, but they could stay longer if they prefer. I could just go find other solo opportunities if they wanted to opt out.

My thought is, they're going to get my equity at some point. They might as well put it to use sooner rather than later ;-)

Assumptions:

• We’d live within 10-20 miles of one another.
• My kids and their spouse(s) would provide assistance to the renovation process as they are able to.

• While buying rental properties probably makes more sense, I have zero interest in being a landlord.

Thoughts??