All Forum Posts by: Michael B.

Thank you so much for your reply. I definitely am leaning towards your approach of using 1031 to secure multiple properties that others may not be able to easily obtain or are not as in "favor" of the higher end product. Thank you so much for your great advice on this!

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I agree Jack, I'm very happy with my first post in this community. A great group friendly and knowledgeable folks!

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Thank you Bruce. I share your sentiment exactly about the cyclical highs as I was caught "holding the bag" from a purchase I made in 2004. It's important to clarify there is an additional 20% capital gain + 8% (infl) that must be factored against the cash premium. As in many things I try to find the middle ground/balance so perhaps dollar cost averaging may be appropriate here (buy a small home now to replace one being sold) and save the remaining cash for commercial opportunities like the great example you provided above. Thank you much for your response!

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Quote from @Edwin Epperson:

@Michael B. There is an investor looking to do the tiny home/ RV park in the Panhandle of FL, near Fort Walton Beach. There could be a way that you leverage the $900K so that you're not putting it all into one project, and can spread it out. I would honestly say that should be a goal of yours, leveraging a DSCR lenders capital, along with a combination of purchasing and Joint Venturing with owner-operators to spread your risks, as well your portfolio diversity. The JV option allows you to tap into equity/ cash-flow without having to manage the assets, and the leveraging DSCR lenders for your own asset portfolio allows you to take that $900K and spread it across several performing assets. Yet as @Scott Wolf mentioned it's your 1031 and your financial future, we can not tell you what to do.

If you would like any connections here in FL I can provide the Tiny Home/ RV park GC, as well I have some 1031 QI's that could help if you have not identified one yet. Best wishes and much success.

Thank you Edwin. Yes, the goal of my post was to tease out creative feedback like your response. I'll definitely explore these options you've outlined here. Thanks so much!

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Thank you Jane and Bonnie! I will explore both of your suggestions to see how they will work in my situation. I really appreciate your timely feedback! mb

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Quote from @Scott Wolf:

@Michael B., I'd use a 1031 exchange here. Hoarding cash with inflation the way it is will most likely make recouping the capital gains hit near impossible. I can't suggest what strategy to use, as that's a decision you need to make for yourself.

Thank you Scott. I totally agree about inflation. Just trying to review all options and/or combos and making sure I'm not missing any good opportunities at this time. Thanks much!

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Hi All,

I will likely be selling a property soon that will have a large capital gain in equity ($900K). I'm a bit torn on how best to re-deploy these proceeds within the current market. I'm currently located in and will likely be reinvesting in a growing Florida tourist area.

At a minimum I will need to purchase a small/moderate condo/house to replace the one being sold. Besides that I would like to build a small portfolio of cash flow generating properties for the long term. The options I'm considering are:

1) buy a small commercial lot to develop into RV/tiny homes etc. (1031)

2) buy multiple small homes to be rented either short or long term. (1031)

3) Should I buy the above options as cash only or extend leverage w/ partial 10/15 year mortgage. (1031)

4) hoard cash and pay 20% capital gains and re-deploy once the market has cooled down substantially.

5) hybrid of the above options.

6) something else entirely.

Thank you much for your time and any guidance you may have with helping develop a strategy for my next steps!

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All Forum Posts by: Michael B.

Michael B. has started 1 posts and replied 7 times.

Post: 1031 Strategies or Cash?

Post: 1031 Strategies or Cash?

Post: 1031 Strategies or Cash?

Post: 1031 Strategies or Cash?

Post: 1031 Strategies or Cash?

Post: 1031 Strategies or Cash?

Post: 1031 Strategies or Cash?