All Forum Posts by: Anthony F.

@Paul Novak thanks for the reply. Question to you then - how and when did you acquire the properties you have now?

My thoughts are current housing supply + high rates + high home prices in OR are restricting our options and liquidating the brokerage to pay off the townhouse = $400k asset + $2,400 cash flow that we could then use to leverage or save into buying another property outright or scale into 4 plex and use the rent to pay down that mortgage too.

@Jeremy H. thanks for the feedback. We haven't lived in the townhouse in the last 2/5 years so we would get hit with full capital gains. To 1031 it doesnt make a lot of sense IMO since $100k of equity going into a new property with 7-8% interest rates will force us to look into markets outside of Oregon, require a Property Mgr at 7-10% and we're almost back at square one unless its a MF with great cashflow.

The main considerations for liquidating the brokerage account are: capital gains + OR state income taxes will be brutal, I like the idea of tax advantaged real estate gains AND growing real wealth and assets, not paper wealth. I understand and appreciate the S&P tracker strategy but end of the day / career means big tax penalties.

HSA is a priority for us this year and we modestly contribute to 401ks, employer ESPP. We could be very agressive on this and lower our tax liability.

We might be romanticizing the real estate opportunity to fast track us to FIRE but we're looking at all these levers and trying to figure out what is the right one / right order to pull.

@Mark Updegraff guessing the upside of my stock portfolio is definitely the wild card, as its more discretionary investment we went heavy risk with AI / tech with large upsides but also wild swings. Hear your Buffett comment loud and clear and current administration is already making waves.

Thinking out loud - cashing out the brokerage account seems like it should be an all or nothing move, to maximize the reward from going all in on RE for FI. But I appreciate the speed check on possibly partial withdraws just enough to jump in the market.

We havent looking into Rochester much yet so I will put that on the list for research for the market. Buffalo is getting a lot of attention right now so it makes sense you guys are getting more eyes as well. Once I do some homework I may reach out but thank you for the comments and giving me something to work on

@Vince Scipione appreciate the reply and your thoughts. Townhouse is 4.5% so any heloc/cash out doesnt make sense on a new property. The slow and steady approach is fine for this property but it feels like a waste to sit on a low performing asset and assuming rent increase is a strong enough lever to pull on for FI. I totally recognize that is impatient and greedy.

My gut is saying your short picture idea is where we're heading since we are taking the same hit with brokerage account (I didnt even mention borrowing against 401k - yes its not advised but my wife and I have stable W2 income to pay ourselves back) Thanks again, this BP community / forum is awesome

Looking for feedback from folks who have been in similar situations and have lessons learned or advice, as I am just getting started and this is literally my first post.

Wife and I moved out of our first townhouse and rented it out to grow our family 3 years ago. We originally used an FHA loan with 3% down, took on MIP, and now have a $2,100/mo mortgage with $225 HOA/mo - so about break even on cash flow. There is roughly $275k left on the mortgage and its value is est $430k.

We have a brokerage account w $300k that considered as discretionary investments because we also have 401k contributions and emergency savings.

Our options we're reviewing:

1) Do nothing. Let brokerage grow, tenants pay down mortgage, and save up for another property organically (Cons - slow growth, waisting equity// Pros - low risk)

2) Cash out the $300k brokerage account, pay off the townhouse, start cash-flowing $2,400/mo, and save up for new investment or 1031 into multi family(Cons - cap gains tax on cash out, high Oregon income tax penalty, hard to find deals being $2,400 monthly cash flow) // Pros- cash flow, increased leverage into large investment)

3) Cash out $300k brokerage and put into separate Multi Fam property, hoping for $2,400/mo+ cash flow, keep townhouse rented as is (Cons - cap gains tax on cash out, not utilizing equity PROs - increase portfolio value, higher upside with value add or rent increase on new units?)

Looking for a gut check here because my CPA/tax guy is advising against dumping the brokerage account bc taxes, missed upside - but he also admits to not specializing in real estate asset/tax protection strategies.  Any and all comments are welcome thank you!