All Forum Posts by: Daniel McNulty

@Serena Tillman

I would disagree with some of comments above, appreciation is not only available in coastal markets. Midwest, smaller markets offer plenty of appreciation and cash flow. More importantly, if your goal is to stop working the 9-5, you NEED the cash flow that is difficult to secure in more expensive markets without a lot of capital.

Check out the podcasts and BP books to get a firm grip on the basics. I would also search the forums for location specific info. 

All that aside,you are probably best off starting in a market you know.

Good Luck

Danny McNulty

Financial Advisor

@Prab C.

As was alluded to already, the answer is, it depends.

You can certainly appeal the tax assessed value either way. The real question is whether or not you will come out on top...

If the property is legitimately worth less from a traditional valuation standpoint you should be fine. Basing your appeal on your purchase price alone is unlikely to work out in your favor, all else being equal. 

Good Luck!

Danny McNulty

Financial Advisor

@Anthony W.

You'll likely have to choose between the location and the return you are looking for. 1 - 1.5% are probably more reasonable in those areas with this being your first go.

Frankly, you may have more trouble finding only 2 bd/ 2 bath in those areas than anything else. 

If it were me, I'd stick to the near east / south side. Plenty of opportunity left across the board, especially if you are going to house hack. 

I'd be happy to connect you to my network if its of any interest.

Good Luck!

Danny McNulty

Financial Advisor

@Terri Sarappo

The decision to fully cash out vs. 1031 is often evaluated in terms of cash flow. If you can achieve your cash flow number without leveraging debt, then fully cashing out may be a "safer" option. Frankly, its potentially a better fit for retired life if you are no longer looking to grow your portfolio.

I too am partial to Midwest and syndicates in general. Passive will have a whole new meaning if you branch out into them.

Good Luck!

Danny McNulty

Financial Advisor

@Jeff Cliff

Yes, they have a 1k minimum balance as well though. I think most custodians will have a minimum balance that needs kept as cash, before they let you invest the remainder.

HSAs are incredible though. They are the ultimate tax reducing vehicle. 

Good Luck.

Danny McNulty

Financial Advisor

@Sergio A.

All the advice above is perfect. 

1. Decide what kind of life you want to live, now, at retirement and beyond

2. Model / quantify your life into cash flow needs

3. Start solving your cash flow needs in "retirement", whether through RE or otherwise. 

Good Luck!

Danny McNulty

Financial Advisor

@Jeff Cliff

You should check your current banking institution, they very likely already have that option for you.

If not, there are the ones above. I use hellofurther.com. I've had no troubles with them. 

@Jeff Cliff

Yes you have the general flexibility to convert to a over many years. Unfortunately, there are not any direct offsets to reduce the burden created by the taxable event. There are however all kinds of ways to reduce taxable income, but unsurprisingly would depend on you more than anything else.

All that being said, now is still an awesome time to convert. I try to avoid speculating on the future tax code, but its hard to see it going much lower...

Good Luck.

Danny McNulty

Financial Advisor

@Grant Maxey

You can certainly find someone on a location specific thread. Local BP members from that thread likely monitor it and will respond. There is also the search feature on here, but its lackluster without a paid account.  

Alternatively, you may repost this thread with the exact city or state that you need help with. That should generate key word notifications from people in that area that monitor the forums.

Lastly, I would encourage you to ask specific questions. CPAs, CFPs, and even attorneys are only as good as the questions asked. If there are specific strategies or parts of the tax code that are of interest to you, you'll likely find more help than generic questions. 

Good Luck

Danny McNulty

Financial Advisor

@Sharlene Burch

Liquidating or even repositioning retirement assets can be a complex tasks.As others have pointed out there are options to invest in RE such as through self directed IRAs. However, there are quite a few regulations to follow in such a scenario. 

Whatever you are inclined to do, there are likely tax considerations now or in the future that should impact your process. More importantly, you should probably consider the hands on effort that can be required to manage your own rental property.

Its all about balance... Good Luck!

Danny McNulty

Financial Advisor