All Forum Posts by: Jason Dalka

@Nate Richards That is the route I am thinking of going. We are trying to avoid any state/federal programs for her care. The required spend down of what she has worked her whole life to save is just not an acceptable option and I believe she will have more options if we are paying for her care. 

@Josiah Barkman What do you think of Wadsworth for rental property? I have family there, think the schools are good, steady growth and the preliminary numbers seem to work.

Josiah,

The property is in the Ellet area a few blocks from the high school. Between Mogadore Rd and Albrecht.

We own a 3/1 in Akron Ohio, my mom's former primary residence. It's paid off. Worth about 85-90K with a little updating. Could rent for $800-900. 

Looking to generate cashflow through rental properties to help offset cost of my Mom's assisted living costs. 

The house isn't in a market that I would choose to invest in but we already own the property. Would you:  

1. Sell and use the cash to buy another property 

2. Rent it and get the cash flow

3. Rent it get then refinance to pull some equity out of it and invest in another property.  

Any input would be appreciated.

@Brit F. , Thank you for the detailed reply, you maybe the perfect person to chat with. She is currently in Ohio but the plan is for her to come down to Texas (near the DFW area, Sherman,TX to be closer to her sister.) Thank you for the heads up on the UBIT and SDIRA (although I don't think we can use a SDIRA because of we would be Disqualified persons.) Totally agree with you on the Medicaid side of things, the goal would be to avoid it completely and cover the cost of care out with cashflow, SSI and supplementing from what is left in her retirement accounts or out of my personal funds depending on which route makes the most sense. Depending on where we can find deals that provide the most upside will determine if we involve a PM company or not. I own a real estate brokerage in Chicago so I have plenty of contacts here but I'm not sure we can get the cashflow needed up here but I am looking just over the stateline in Indiana.  Any professionals you can recommend in Texas would be welcome on my end.  

Thank you all for your input. I am speaking with an Elder Law Attorney this week as well as her current financial planner. As far as what we know so far is that she can shelter approximately half of her savings but would have to contribute the rest to paying for her care before she qualifies for Medicaid. To me that seems like a terrible option but... 

I totally understand that real estate is not a passive investment, I've worked exclusively in the multi-family real estate world for the last 10 years and I would be the one findings deals and handling the day to day  Unfortunately, they are old school and don't talk about finances with the kids. If they had we could have been more proactive in planning for this.

Hello,

My mother-in law has about 700K in her retirement accounts and has suddenly needed to go into long term care (about 8K per month.) We are thinking that rather than simply spend down her retirement funds to pay for this care that there maybe a way to invest in rental property in order to pay for a significant portion of that cost through cashflow generated from rentals. She would be comfortable investing about 350-400K into acquiring multiple properties to generate needed cashflow. We would like to acquire 10-12 units with each generating about $400-$500 per month in cashflow. Any suggestions on where to look or ideally someone has done something similar. Thanks in advance.