All Forum Posts by: Matthew Samson

@Bill Hampton Thanks so much! 

Thank @Account Closed! Something more passive via a syndication could work for them, and otherwise they'd probably prefer something simple like a long term single family rental.

@Dave Foster Super insightful. Thank you! That would be an ideal scenario for them. 

Hi All. I'm diving into some of the public county-level Zillow data. One metric they provide is new construction sales, which I can use to calculate % of total sales and see whether that value is trending up or down.

My question is, in general is a market more or less desirable if there are a lot of new builds hitting the area? 

On the one hand, I can see it as a positive indicator, for example of market health and increasing suburbanization. On the other hand, it could also mean there are lots of other desirable houses hitting the market, making older properties less desirable and/or lowering demand. 

Would love to hear your thoughts! 

@Corby Goade yep, that sounds like a plan. We'd even be happy to move them into one of our (future) properties and just let them keep all/most of their rent income as free cashflow. 

Of course, that opens up a whole new can of worms RE the tax implications of having the in-laws live at below-market rents in one of our properties. 

Me too! 

Thanks Robin! 

Thanks everyone for your great input! It sounds like we'll be trying to keep the property in perpetuity, and then ultimately pass it on through inheritance. 

We'll certainly want to keep the property tax basis as low as possible if we hold it. I think an equally probable scenario is that we'll convert it to a rental, and then look into a 1031 exchange if we think we can trade into a better-performing asset. 

I hope that sounds reasonable?! 

Hi All. So excited to be a new member in the BP community! 

My parents in-law bought their primary residence in California for ~ $350k and now it's worth over $2mm. Obviously, their capital gains are well beyond the $500k primary residence exemption. They want to minimize their tax and/or refinance burden, to keep as much of the capital gains as possible to help fund their retirement. They would also like to keep living there for the next 3-5 years, before downsizing. 

So my question is: how can they minimize their tax burden? Luckily, my wife and would be in a position to buy their house from them at fair market value, if that is the best option? We would also have the liquidity to explore other options. 

Of course, we'll be looking to consult with a CPA on this! We would love to get some directional help from the community first, so we can ask better questions moving forwards! 

Thanks both for the warm intros! 

- @Max Ferguson Definitely eager to start with something relatively simple to get some skin in the game and learn firsthand. We'll be listing our primary home for rent in about a year, so adding value to that (e.g. creating a 5th bedroom), and then qualifying for an owner-occupied mortgage in our next city could be a good start. 
- @Michael Dumler Hahah it was time for a pivot away from my full time job in tech anyway. Luckily my wife is a physician who just finished residency, so she can take a turn being the primary breadwinner. 

RE strategy: I'd love your feedback! Aside from real estate investing obviously being a great vehicle for long term wealth creation, I actually think that I'll really enjoy the work. I'd be happiest being quite an active investor and property manager.

Of course, given my wife's job there's a also a huge incentive for me to qualify for real estate professional tax status and (if I'm reading things right) maximize our paper losses. For that reason, in the medium-to-long term I like the idea of multifamily residential for the more aggressive depreciation and ability to scale (vs single family). 

Would love to hear your thoughts on whether that makes sense???