All Forum Posts by: Srinivas Reddy

Karina ... i didnt wanna have to deal with mortgages but increasingly that may not make sense. Not tying it up in 1031 and investing it separately is definitely a better strategy (thanks to all of you who take time to advice!). Im married filing jointly so I may actually get $600K from the sale of my primary and I can keep it invested for 4-5 years in S&P500.

@James Hamling that is a whole lot of stuff to chew on. Thanks! Its a little hard for me to jump back into 'distance' real estate investing. Im gonna definitely investigate all options.

@Nesha Renucci Yes that is exactly what I had in mind. I will keep all of you in mind when I actually start working on doing this (whew!). Los Feliz/Glendale/SilverLake/Toluca are my targets in general!

Thanks Dave! Appreciate all the detailed posts by all of you. And yes, putting the tax free cash in investments did cross my mind. I was hesitating due to paying that hefty capital gains but in retrospect (after reading all these replies) I could pay a small amount of capital gains and invest this money in the market, considering my real estate portfolio outsizes my investments. And maybe buy a multi-family home with potential for an ADU to add value.

Steve, actually im trying to 1031 my rental. My rental has a mortgage of almost $500K. If i sell my primary I can pay that off because ill net $500K with the sale of my primary. That way the rental is fully paid off and ready to be 1031 exchanged.

Theresa .. im just about $500 positive on my rental after my mortgage/taxes/insurance payments. Not a good deal! Also it is in an area that is heavily rent controlled (Bay Area).

Thanks Joe and Brian. If I do pay capital gains then id be left with roughly $1.5m in tax free cash. We may be better off buying a multi-family home for $2m with potential for ADU expansion that would bring in a little extra income.

Thanks Bill and Brad. Definitely something to chew on. Even annuities sound better than having to deal with real estate rentals. We are currently barely breaking even on the rental as it is an old building and needs a lot of maintenance. I was hoping to defer capital gains and somehow convert it into income!

We are set on LA (Glendale area) because of family. Getting a multi-family home with ADUs expansion capability is another option I was looking at to boost income. If we sell our current home where we live in and pay off the remaining mortgage on the rental we will have $2m in cash available only for rental though (because of 1031).

Hi All,

I'm totally new to this so bear with me (acronyms!). We own 2 homes - we live in one and rent the other. We plan to sell the rental home which is valued at $1.8m - $2m. We plan to sell our current house and net $500,000 in proceeds which will help payoff the mortgage on that rental. We figure we will have roughly $2m to make a 1031 exchange so we can sort of live off of it because we are nearing retirement. We don't mind living in a nice apartment!

Is it possible to invest our nest egg (no other income source other than social security and a little bit of 401K) in a safe manner so as to fetch between $10,000 to $20,000 a month. Just throwing numbers out there! A friend of mine suggested investing in a warehouse but that didn't work out.

Any info or ideas are appreciated. We plan to move to LA to be closer to family.