All Forum Posts by: Hannah Stern

@Matt M.

"You have to think about it being a money making machine at this point, rather than your childhood home. It’s about making sure mom is taken care of financially now, any your financial future. It’s just a house.."

That was hard to read, but you're right. If her medical expenses never changed everything might be ok... but if they go up then I will have wasted a potential opportunity to make and save the money that could have helped us both. Thank you for that, and for sharing your own experience. 

@Jay Hinrichs The property is now in a trust with myself as "chairperson." Additionally, because of her condition, I have full Power of Attorney. I don't think it would be easy, but I do think that a 1031 would be *doable.* What's your opinion? 

@Joe Splitrock 

"You are past the depreciation period on the property and with that massive income, you have unnecessary tax burden. If you do a 1031 exchange, you can get new depreciation expense to offset income and reduce your tax burden. Even if you or your mother are in a low tax bracket, odds are good with depreciation that you could claim a loss. Maybe even get money back."

Your comment was the deciding factor if I'm honest. Thank you for the input. When I started reading about depreciation, it dawned on me that while I have some money coming in, I might be able to do better. I'm not getting the most I can from what I have. Thanks so much for your input!

@Dave Foster you're right. It's hard to let go, but I think I'm just holding myself back with this. Ok, let's say I want to move forward; what are the next steps in evaluating the right deal? Would you contact a real estate agent first? Would you speak to a lawyer?

Thanks!

@Mike Dymski ok, a different approach, yeah. So, there is a mortgage on it currently for about $350,000. Are you saying I could refinance and take some equity out, and then use that to purchase something? That's worth exploring. Who would I talk to about something like that? What sort of professional could help you run those numbers? It's got to be an attorney or the like, right? 

Thank you!

@Theresa Harris A great point. I am most certainly holding on to it for me. I suppose there's a nostalgia in walking my sons through the house I grew up in... but that's maybe an hour of time. And nobody is going to thank me for not taking the opportunity to explore whether I can do a bit better for us financially. Thank you for the frank opinion! I really value that. 

@Eric Hajdu It's tough letting go of something like that. Specific to the Brooklyn market: what do you mean by "uneven"? How did you find a neighborhood where you can get a higher rent? Part of my concern is that Park Slope is SO well established right now, and it's a bit of a case of "a bird in the hand..." I know Park Slope will give me a certain income per month, but if the fed increases inflation of the next year or two and there's a recession, how can you be sure a different neighborhood won't lose value? I know that's a lot of questions. :) 

@Anna Laud thanks so much for that. It's really hard to consider but your framing really helped me think about it in a different perspective. Thank you so much for taking the time to respond!

Have you ever had an emotional tie to property? What did you do about it? How did you weigh pros Abs cons?

I’m not *really* a newbie at managing real estate, but definitely never looked at it as an investment the way a lot of folks on here do, and exposure to this community has led me to question my mindset, so I’m looking for your thoughts, please. 

40 years ago, my mom bought a piece of garbage house in a small neighbourhood of Brooklyn, NY. She “house hacked” before it was cool and turned the upper floors of her brownstone into apartments. I grew up in it. 

In 2021, her fixed up house in Park Slope, Brooklyn would go for about $4mil, and the rent now supports her Alzheimers care. 

From what I’ve seen on here, I could do a 1031 (I think that’s what it’s called), and purchase another property, maybe a multi family somewhere, that brings in more than $18k per month… but I have these emotional ties to the house. 

Someone talk some sense into me. I imagine that if I bought the right apartment building I could probably retire next year and still have enough for the best care for her. But I love that house.

Have you ever been through selling a family home? How did you manage the sentimental side?

Thank you!