All Forum Posts by: Jonathan Bock

Best Books for Section 8 operators that give some actual experience of real investors in this specific niche. 

I owned a portfolio of low income SFR and found it rewarding and challenging. But all the posts have been excellent this is a brutal market segment and not for the faint of heart.

-Streetwise Investing in Rental Housing by H. Roger Neal

-Section 8 Bible Books by Mike Mclean 

Jon Bock, CPA 

Jonah 

Section 121 exclusion is a little more complicated its a great incentive can you give us some more color and dates that would help with analysis.  You probably already know but 121 is bracketed 250k/500k for the capital gains exclusion.  

Jon Bock, CPA   

Hariharan,

I love what you are planning to do unfortunately no one can tell you the perfect plan for you it comes down to your comfort with debt and leverage its an emotional decision not math.   

What is guaranteed is your long term 25 year plan will not work the way originally planned.  

Leverage is the double edged sword naturally most investors love it and they only hate it when it turns on them.  

When Ramsey pops up in your feed think about what happened when he went BK in real estate?  Was he just unlucky in real estate, not a good operator or could it have gone the other way ?  

Real estate is not risk free it's just a reality your long term planning is truly impressive but realize life is going to happen.

Caveat, I did the infinity leverage approach when I started but never take it for granted you never have full control in this business its just an illusion get comfortable with it and you'll survive and thrive.  

Jon Bock, CPA 

Megan can you give any more color on your entire situation ?  This could be a good idea or it could be rather mediocre it really depends.  

Are you paying into Social Security at all ? This could be a big decision factor for a LIRP as an alternative.  This applied to me when I was young unmarried and lived off my rental income.  

Are you still actively growing your portfolio and will need to access the life insurance cash value for loans for your real estate business?

The structure of your policy design is crucial especially since you mentioned the death benefit is ancillary to you at this time.  I'm hoping your agent is presenting you a blended policy or maximizing your paid up additions to be advantageous to you.

Because you feel that you will be in the highest tax bracket the taxable equivalent yields may present well also.  

There are lots advantages with a ton of qualifiers for life insurance my advice stay agnostic and do what's in your best interest.  

Jon Bock, CPA