Since your current portfolio is generating healthy cash flow, you might benefit from diversifying into an asset that provides a mix of stability and growth.

Even if a property only nets 300 a month it would be great on the appreciation and tax benefits alone.

How have they benefited you?

The current tax code provides special benefits in this situation.When the original owner passes away, the "basis" of the assets resets to the market value at the date of death.In the US, there is currently an estate tax exemption of approximately $13 million per person, which allows the basis to reset, and depreciation can start anew.This “step-up in basis” is particularly useful if the next generation wants to sell the asset.Since their basis is set at market value, if the property is sold at that value either at the date of death or within six months, there is no capital gain and no taxable event.There have been many examples where portfolios of fully depreciated real estate worth tens of millions of dollars have been passed down from one generation to the next, resulting in little to no tax liabilities for their heirs.Pretty cool, right?

Consider the Costs and Benefits: Legal action can be costly and time-consuming, so it’s important to weigh the potential outcomes against the costs involved.

If I can be of benefit to you in any way don't hesitate to reach out to me.

As you can imagine the recent exits have lower average IRRs than the ones before, but did outperform proforma.We do have to agree with the comments on this string that our earlier exits did benefit from the 'all ships rising' effect.

If your expenses associated with the rented portion exceed the income, you may have a tax benefit if you are eligible to deduct passive rental losses from your other sources of income.

They never received the cards, I keep them, so there’s no danger of them ever using them on anything and they get the benefits of the higher score

Each strategy seems to have its pros and cons, and I’m curious what the community thinks.Do fix and flips provide faster returns, or do the long-term benefits of rental income make holding onto properties more appealing?