All Forum Posts by: Paul V.

From what I can remember is that we couldn't rent it out for more than 2 years.  It has been a while so my memory might be fuzzy.

My first investment 24 yrs ago was a condo with a low down payment.  It crated a lot of equity for me over the years without having to worry about maintaining the building.  My strategy was to bit the lowest prices unit in one of the most desirable neighborhoods.  Best wishes!

@Tom MurphyI'm in a very similar position as you.  If you qualify as a accredited investor you might want to take a look at passive investing in syndications.  I have begun to look at them and the opportunity to earn 15% to 20% passively is really interesting.

@Leor Fay how much did you pay for the property when you bought it?

@Leor Fay Long term capital gains rates below.  It is based on your income.  Either way, getting a 21k profit on a 38k investment in a matter of 2 years is awesome.  That's something like a 25% annual rate of return. Amazing!

Welcome @Brendan Bouffard!

A couple of initial thoughts from someone who takes a long term approach to wealth creation with RE.
What is your primary residence situation? Do you own? Rent?  If you have flexibility on your primary residence you might want to look into this strategy: 
1. Buy your primary residence as owner occupant with a low downpayment (5% down?)
2. 1 yr later purchase another home as your primary residence with a low downpayment (5% down).  Convert your home from #1 to a rental.
3. 1 yr later purchase another home as your primary residence........ You get the picture.

If you are buying in a healthy market, after a couple years, the first properties will have built up equity at which point in time you could do a cash out refi.  This would provide you with a return that should significantly outperform what you would get in the stock market.  When you have enough equity and need cash flow then you can sell these properties and 1031 them into income focused properties.

Hope this helps.

Sure thing - Check out BP Podcast 662 with Chris Lopez

By far the most important metric for those in the equity growth stage

If you would like to model out your financial scenarios to determine ROE I would recommend running the numbers for your properties/portfolio over at propertyllama.com - Full disclosure I am helping them with their launch.  

When did you purchase the property?

Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term.

Short-term capital gains taxes are paid at the same rate as you'd pay on your ordinary income, such as wages from a job. Long-term capital gains tax is a tax applied to assets held for more than a year. The long-term capital gains tax rates are 0 percent, 15 percent and 20 percent, depending on your income.

 This was a couple of decades ago, so I don't have all of the details, but yes, I did make a profit, probably the best return on equity that I have achieved because it was only a 1 month hold.  I sold it fsbo so no commissions were involved.  Had I paid an agent commission I probably wouldn't have made money.