All Forum Posts by: Jack B.

Just ignore him. If he wants to try and get some higher up authorities involved, then go from there if that day ever comes.

Call his bluff essentially. Then if he continues to bug you, bring up the driveway and ask if he wants to go down the route of the fence then you'll explore the driveway issue at the same time.

Just ignore him. If he wants to try and get some higher up authorities involved, then go from there if that day ever comes.

Call his bluff essentially. Then if he continues to bug you, bring up the driveway and ask if he wants to go down the route of the fence then you'll explore the driveway issue at the same time.

 @Jack B. @Account Closed (especially Mr. Jensen as an accountant) You guys are going to have to explain that to me.  From a tax perspective, how is a cash flowing real estate portfolio better than a massive stock portfolio?

For starters, the former presents the heirs with a bunch of management issues.  If there is a PM, then they have to spend time communicating with them.  Depending on how transferred on death, all the Titles have to be refiled --- time and expense.  If the heirs don't know or don't want to have a real estate portfolio, real property is illiquid and will cost to liquidate.  

The latter presents the heirs with no management issues.  If setup similarly, it will be generating massive cash flow (as I've already mentioned in other posts above and elsewhere) as well, even potentially tax advantaged.  The very wealthy rely on tax free municipal investments.  Depending on what state, it can even be triple-tax free.  The assets are completely liquid.  Upon notification of death, the brokerage can handle the transfer on death and have the accounts created and assets transferred in less than few days.  The assets can be liquidated, and only tax consequence is the change in values from the date of death --- yeah, step in basis applies to a lot more than just real estate.

Oh, and if the heir keep the real property, they are now most likely banking up more deferred tax liability (e.g. the depreciation), the exact characteristic you are trying to get away from via death.

Please explain what am I missing (other than I am sure there is more to my argument)?  Thanks so much.

whenever I read the borrow and die I found it to be very funny, first of all the borrow part is no longer working as interest rate is whooping 6-8% , HELOC is 12/14% and once we are retire, there's no opportunity really to do refi or HELOC. So that window opportunity is closed.

I would rather pay tax and live happy in the younger days, there're just still so many opps to live happy without thinking not to die LOL

@Carlos Ptriawan Yes, finally another topic we can agree!  Why bother paying somebody/entity 6%-8% for years for your own money when you can just pay uncle sam once!  then, of course, on any additional gains you make.

I had one "older/wiser" investor try to "sell" me that if I sold I'd only KEEP 40%.  After having saying he would send me how there is a 60% tax/fees, he has since ghosted me.   I love how investors get "sold" on paying a lender continual interest is better than paying your tax once.

From a tax perspective, its best to "buy, borrow, and die". If you can gift your heirs cash flowing real estate they can rely on, I would think that is practically better then a massive stock portfolio. 

We sold it all in 2019 and retired in our early 40s. Thought about 1031 but after a year couldn’t find anything that would cash flow as well as our units. Didn’t want to the hassle of maintenance or management. So we sold it all piece by piece, paid the taxes, and never looked back.  Also it completely freed us to be able to travel anytime anywhere for weeks at a time and ultimately months at a time.  

I know we had less on paper right after selling. But the stock market has been good and I think we made up most if not all of the $ lost to taxes in the last few years.   And probably from here on our networth will grow even faster than had we left it in RE.  The stock market does tend to grow much faster.  And no hassles.  

We bought some amount of dividend paying stocks and indexes that help to offset our previous cashflow.  

I initially thought I would keep the properties as a part time job forever.  But, once we had enough networth and dividends there was no more need to keep working.  

To each their own. We decided that enough was enough and left the field completely.  Never been happier or less stressed.  

All the cash-flow in real estate is becoming a joke when we could create safe and hedged 20-50% dividend income with latest product of derivative-options ETF.

$6000 investment is printing $380 per month LOL.

The only way moving forward with real estate is only appreciation these days. As long as I force myself to DSCRed all asset close to 1.0 I should be good . 

No syndication, no hundred dollar cash flow, nothing. Print money just using ETF/dividend.

I would pass on both Tenant A and B. They just sound like PITAs. Why not just keep advertising to find a good solid LTR tenant? They have to be out there somewhere.

Or better, do #C and do it again as a STR in the summer....at least with a STR you avoid the LL unfriendly laws.

Pay attention to what @Henry T. says. the stories we hear are too many and too scary to ignore.