It's no secret that New Jersey is one of the most diverse states in the union, but numbers and charts often don't illustrate exactly what that means very well.

Is there a graph which illustrates this somewhere - something which shows that if you sell house in year 5 vs year 10 vs pass it on to heirs what happens to taxes.Thanks so much

This is a lot better question than how to charge a late fee or what holiday gift to get for a resident.Well thought out plan and this illustrates one of the huge benefits of commercial real estate, even at lower prices than discussed here.I am not qualified to answer but your 20% appears rightfully conservative and your $7.5 million appears correct.We all come here for answers and I typically don't like the "see your CPA" replies but there are tentacles into the rest of your tax return that may need to be factored in if you don't offset or defer the gain and recapture (phase outs, AMT, etc.).Not part of your post, but another good use of cost segregation plus bonus depreciation plus real estate professional status is the possibility of performing a tax free Roth conversion...just brilliant...tax free in, tax free out.

@Brian Burke your post here is such a great illustration of the multifamily syndication strategy (especially with the chart!).

Hi Christopher,Never Split the Difference is one of my favorite books, when I started utilizing calibrated questions and labeling it was a game changer for me in my sales role.I’ll admit I haven’t used it in real estate yet but here are some ideas I came up with that should illustrate how you can use two of the main concepts.Chris Voss defines a calibrated question as an open ended question, a question that can’t be answered with yes or no.One example might be when reaching out to an absentee owner lead instead of asking “Would you be interested in selling property x” try “What are your plans for property x?”.

@James Masotti,I think you illustrate, well, why knowing the area in which you invest is so important. 

Don't take the seller's cap rate at face value and always make your own calculation.I believe that @Bob Bowling was using the cap rate to illustrate a different point.

Here is an interesting paragraph from another article - http://palawblog.stark-stark.com/2011/03/articles/...To illustrate how a tenancy by the entireties benefits creditors, the 2005 Pennsylvania Supreme Court case of Regions Mortgage, Inc. v.

The illustration above allows different values to be assigned.

Recently sold comps are what you use.The Heloc will produce the same result.  80% of property value minus amount you still owe (80% x $600K = $480K - $477K = $3K).Therefore, currently your best option would be a LOC.As for your last question I think I already answered it.I agree that the refi may not be his best option for cash out re-finance purposes for the reasons illustrated, however it may still be worth while if he is able to get his rate and payments down significantly from the FHA rate he is currently paying.