All Forum Posts by: Pixel Rogue

Quote from @Bill B.:

I don’t think you want to try the fund sites. Their plan is to sell in 3-5-7 years and capture the gains so they can cash in. Then you’ll be forced to start over. 

Try a different market or property type? Are you using a PM? I only have a dozen properties but I spend less than an hour a month and half of that is accounting because I like doing it. I might have 4-5 repairs per year. (1 every couple years per property.) But 2-3 of them are under $250 and I never even hear about them other than the fact they are fixed. Most tenants stay 5-10 years so there’s almost zero vacancy. 

I bought SFR under 20 years old in a market with no damaging weather, stucco siding, and tile roofs for basically zero exterior maintenance. Then I picked a solid PM. I think that's key to being a landlord long term. I've only got 25 years in so far. But I find it more boring than tiresome. There's nothing to do.

I can’t sell them, my life wouldn’t become any easier. I’d just be giving up my freedom and a boatload of tax deductions. 

PM = Property Manager? If so, explored the option a few times over the years. Think best rate I was finding was about 7% which only included rent collection, the easiest part of the job. Repairs = extra (at u defined captive audience rates,) turn overs at the usual 1x monthly rent  Legal needs = all extra. Didn’t seem cost effective.  Most are single unit condo style, and one 4 unit building. 

SFR = ?

Quote from @Jules Aton:

Quote from @Pixel Rogue:

This depreciation recapture is a beast.

We do not want to be landlords forever, wearing maintenance hats and dealing with the day-to-day. Seems like owning them for so long was a mistake. If we simply sell outright the gains, I’d any, will be miserable and essentially toss away decades of work,

how else do people off load these investment properties (didn’t care the the DDDD strategy.)

Has anyone 1031’d into credit sited funds (think crowd street or other funding platforms that accept 1031’s?)

 Really important not to let the tax tail wag the dog. You have made decades of rental income and appreciation. Sell them, pay Uncle Sam and enjoy your much deserved retirement. 

I have done 90% of everything solo, and couldn’t even provide myself minimum wage based on the rules. Rental income was to keep it going and a little equity each year. To sell and net very little would result in a 20 year failure. Especially if mapped against opportunities such as even the basic S&P500.

This depreciation recapture is a beast.

We do not want to be landlords forever, wearing maintenance hats and dealing with the day-to-day. Seems like owning them for so long was a mistake. If we simply sell outright the gains, I’d any, will be miserable and essentially toss away decades of work,

how else do people off load these investment properties (didn’t care the the DDDD strategy.)

Has anyone 1031’d into credit sited funds (think crowd street or other funding platforms that accept 1031’s?)

thank you for the summary, as I forgot about a few of those points. All properties have a minimum of 5 year ownership. 

Depreciation is the kicker.

On the forever home, the 1032 would be through a multiunit we have had for twenty years - heavy depreciation. Depreciation is the one key factor why we would convert home to primary residence after a few years. Depreciation rolls all the way back to 2005.

In the second example, we are looking at at the following:

Multiunit purchased in 2004 > 1031’d into investment condo purchased in 20019. So depreciation reaches as far back as 2004. 

so the concept would be to wipe out depreciation recapture by having each as primary residence for 2 years (Pia to move every two years mind you.) 

Hello everyone! Think we found a forever home, which we would be planning to purchase through 1031 of investment property.

Plan would be to rent out the acquired property for a few years, move in, convert to primary residence. How long must one live in the property as primary home for full

Few related questions: 

If one wanted to convert an investment property to primary home and later then sell it, how long must one live in the unit prior to selling? 
For more clarity, this would be to minimize tax obligation.

In theory one can sell a primary home once every two years. 

——

On a related note - We have an opportunity with a different investment property that we purchased through 1031 a few years back. The relinquished property we had for over 20 years. Could we move into that home, convert to primary home and sell it a few years later to benefit from the primary home allowance? Similar concept, as a way to sell a property off instead of 1031 exchange and minimize tax obligation. 

Hello everyone,

In a contract to purchase a property which has a name appended as 'or as assigned' which we use to set up LLCs.
We may have also just found a much more appropriate property to purchase. 

In theory, and looking for input here, I am thinking there are ways to resell the property under contract prior to official (original) closing where neither the seller nor the buyer lose out; we even think the property could sell at a higher price. Has anyone done this? What methods were used? We wouldn't see it going to MLS per-say because the same property is listed already as under-contract. We wouldn't want to lose a hefty deposit, nor the sellers worry about finding another buyer.

In my brief DST hunts, I was a) turned off by returns and b) found them (DSTs being reviewed) all rather 'protected' so you couldn't get much transparency on what was happening in the background. You get a marketing flyer w/broad terms and broad dates and when you want to know specifics, specifics remain proprietary. Both were consistent experiences, so never went this route.

Drew - did you know how the investor had those properties arranged? It is my understanding moving every two years only works (matters) during the first five years of ownership, and needs to have been a personal home before a rental. Otherwise you are prorating against the years rented.

Selling every 1-5 years - that seems to result in heavy tax exposure as not seeing too many expenses that would offset capital gains. 

Open to discussing there in the forum as always. :-)

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