All Forum Posts by: Evanthia V.

Thanks David and Joshua for the clarification.

As I see it the DST PROS are:

- completely passive investment while remaining in real estate (mailbox checks)

- avoiding the capital gains tax

CONS

- illiquidity

- no control

- potential to have investment tied up for 5 to 10 years

- lower ROI than a traditional 1031 exchange into another investment property outside of a trust

I would be willing to purchase another property, more likely a multi-family, and hire a property manager to handle the day to day. But I will need to move quickly to identify the property within the 45 day window from the date of closing on the property I am selling. Just about all of the multi-families in my city are either rent stabilized or rent controlled and the buildings are selling at ridiculously low cap rates as people seem to be buying as an appreciation play instead of a cash flow play. I am more interested in cash flow with the potential appreciation being a bonus.

I appreciate the input.

Is there anyone out there that has actually opted into or out of a DST that can share their experience? Many thanks!

Hi everyone. I'm new to the BP community and am absolutely loving the exchange of information I've seen on the forums and blog posts. I've been consuming both podcasts and loving them as well.

Here's my question: I have a single family investment property that has appreciated significantly and I am looking to sell the property to obtain a better ROI. A sale will result in a significant capital gains tax bill, which I would prefer to defer. While a 1031 exchange in theory is a wonderful option to defer the taxes, I've come to realize that being a landlord is not for me. I would be open to purchase another residential investment property provided I find a property manager to handle the day to day operations. So a 1031 is not completely off the table. Another challenge is that the 1031 timing rules make it incredibly challenging to find a replacement property or properties to invest in with a desirable cap rate in my city, so I would be interested in an out of state investment, which would put even greater pressure on locating a replacement property considering I haven't even started to consider which states I could potentially invest in.

While doing a bit of Googling, I came across the Delaware Statutory Trust (DST) that is a completely passive investment in real estate that allows for the deferral of capital gains on the sale of the investment property.

I've read the pros and cons that the DST providers list on their websites, but I would love to hear from individuals with real life experience who have opted to use a DST in lieu of a 1031 exchange and from those who did the analysis and decided a DST was not right for them. Basically I'm looking for real life pros and cons I should be considering.

Thanks so much! 

I am very interested in this conversation as I too am exploring the possibility of purchasing a duplex in the North Lake Tahoe area, where I can rent one unit year round and rent the second unit when I am not there. We currently live in NYC and are seriously considering moving to a no income state tax state such as Nevada.  

We are interested in a location that is in short driving distance (approx 20 minutes to the lake) and similar driving distance to other outdoor activities such as hiking in the summer and skiing in the winter.

We visited South Lake Tahoe last winter and absolutely loved Heavenly and we are heading back this fall to get to know the North Lake Tahoe area.

I'm looking forward to hearing from others who are familiar with the area and I would also be interested in meeting fellow BP'ers when we are in town this fall.  Thanks!