Location-wise, I’m flexible but leaning towards the East Coast, preferably in a warmer climate.

Additionally, if your goal is to maximize personal financial benefits, consider profit distributions from the property-owning LLC, which may provide tax flexibility depending on your situation.By adhering to FMV, maintaining proper documentation, and structuring the lease agreement carefully, you can optimize tax benefits while staying compliant.This post does not create a CPA-Client relationship.

There's actually a good chance your overall "cash out" with the HELOC will be higher (most banks will go up to 90% vs 80% is generally the highest a cash-out will do) albeit at a higher interest rate, but you can protect the original mortgage rate if its very low (2020/2021 rates).Also consider the flexibility of only pulling on the HELOC when you need it thereby keeping expenses down.

LLC is most flexible entity.  

Investment Info:

Townhouse buy & hold investment.

Purchase price: $73,000

Cash invested: $25,000

Current market rent $1295 vs $1300 for Section 8. House clean completed 2/19/25 and will sell ASAP...

This option minimizes taxes while allowing more flexibility to reinvest without 1031 restrictions.Option C: Sell Now Without the ExclusionSelling immediately means paying capital gains tax on the entire gain, including depreciation recapture, making this the least tax-efficient option.Additional Considerations:HELOC or Cash-Out Refi: If you want to keep the rental while accessing equity for your retirement home, consider a HELOC or cash-out refinance instead of selling.Estate Planning: If you hold the property until passing it to heirs, they receive a step-up in basis, eliminating capital gains taxes entirely.For tax efficiency, staying two more years allows you to partially exclude capital gains, while a 1031 exchange defers taxes if you plan to continue investing in rental properties.This post does not create a CPA-Client relationship.

Hi everyone,
I’m exploring a unique development opportunity involving my property and neighboring parcels, and I’d love some advice on how to move forward.
My neighbor is currently in the process of building 54 to...

Howdy all, 
 
I’m an architect and first-time house hacker looking at a Duplex in Oklahoma City. It has two 2-bed/1-bath units and a detached garage apartment (ADU) that needs to be fully gutted and redone. ADU has po...

What type of properties are you seeking, SFR, 2-4 MF, or 5+ MF?

TIC offers lower entry costs and flexibility but comes with shared risks and complexities.