All Forum Posts by: Michael Emanuel Wojcik

 There are a number of variables that affect markets and some are difficult to foresee.  The Federal Reserve appears poised to raise interest rates by .5 basis points for two consecutive rate hike periods.  The Fed is trying to curb inflation.  High inflation rates can signal an ailing economy.  Increased interest rates can slow the real estate market.  There may be a correction in real estate prices, but the cost of financing a real estate investment will likely rise.  It may be worth observing what affects the next two interest rate hikes have on the economy and then decide your next steps. 

Thanks for the data points.

Best regards,

Mike

Daniel,

At the end of the 27.5 years, you can no longer take the yearly depreciation value as a tax break.

Best regards,

Mike

Take into account that you can depreciate your asset in Tucson for 27.5 years. I hope you have a good interest rate on the home in Tucson. That is saving you money and as noted, your new interest rate in Gilbert would be 6.25%. If you want money out of your home in Tucson, you could do a HELOC, but be advised that you would have a variable interest rate. Your home in Tucson will still appreciate and give you positive cash flow. Consider not doing the 1031 exchange until closer to the 27.5 year depreciation limit. All the best to you! Mike