All Forum Posts by: Walter Wintermute

Thanks for the advice!

Will try and pay down the remaining mortgage with money coming in from the other rentals and not touch the retirement. 

Andy,

I am more or less breaking even on the rental and am concerned that I would not be cash flow positive if the rate goes higher, since it's a variable rate. 

Frinee,

I do have the option of paying it off with Roth 401K funds, which would mean 0 tax implications. The drawback, ofcourse, would be that I wouldn't have much remaining in the Roth 401k.

Hello,

I am 62 and nearing retirement. I have a remaining rental property with a $120 K mortgage. Unfortunately, this property has a variable interest rate that is currently 6.5 %. Reviewing my 401K over the past 5 years, it's averaged 5 %. I have enough money in my 401K to pay off the Rental. Alternatively, I could use money I have saved in my Roth 401 K to pay it off, tax free. However, this would reduce my total retirement savings to about 450,000 K. I have three other rentals that i own, free and clear. I see these four rentals providing us a regular stream of income during retirement. In a situation like this, does it make sense to pay off the final rental, or is this a really bad idea?

Thank you for your responses and providing me some additional options to consider!

I'm nearing retirement and considering what to do with a few rental properties that would net about 900 K, if I avoided taxes. I've owned both properties for about 20 years. 

I have been thinking it would be nice to receive regular, passive income, without being an active landlord.  Perhaps a 1031C into a commercial property with something like 1031Crowdfunding.com, but quite frankly I'm nervous about the risks of doing an investment like this, not having a lot of experience or knowledge in this area.

The other option I've been reading about is a CRUT or Charitable Remainder Unitrust, where you put the real estate in an irrivocable trust, sell the real estate, invest the money, and receive yearly payments from the trust until death, at which point the remains go to a charity of your choice. Frankly, the CRUT sounds less risky, but would like to understand the ongoing costs of a CRUT and what the downsides to this approach would be. Also would like to know if there are other options I should be considering.