All Forum Posts by: Angelo Russo

I'm in Cleveland ohio. I have two six suiter apartment buildings, I had a 72 suiter, and about a dozen SFH. It really is a matter of procurement cost, same money, you want SFH. Multi family is easier to maintain, and should get close to same rent as SFH. It is all about what the initial cost is.

First, the self directed IRA would be great to shield a lot of the income, but there are things you need to do to make sure you do not trigger a taxable event (control over the investment)

But, I have drafted one year least to own and then you can do long term capital gains on the property. Saves you quite a bit of money, but you do have to be the bank for a year. there are worse things.

No one seems to have answered the other part of your question, how soon can you "cash out". a year is generally a safe bet. Generally a cash out refinance done before an exchange is what would trigger tax consequences.

As for the rest, everyone is correct, you do not have to invest all of your proceeds, but taxes will be paid on whatever you take out, or whatever liability you are relieved from and do not take on. (ie $2M property, $1M cash, $1M debt, new property has to have at least that much debt, or you get taxed on the "boot")

Also, there are restrictions on how much larger the property can be, so double check. I believe it is 200%.