Hi all,Was hoping to get perspectives / hear stories on how others approached the possibility of selling RE assets and using the proceeds to paydown debt on other properties.Here is what I see as potential +’s and -‘s:+ increase cash flow by removing mortgages (so more passive income)+ opportunity to sell underperforming assets- less assets under management (so less potential equity appreciation)- taxable gains (will not redeploy into RE as my sense is we are near the top of the market)- 30 year fixed mortgages in place at low 4-handle rates (based on simple bond math, the value of my liability is shrinking on a relative basis as rates rise)Other facts relevant to my situation:* RE is but just one asset in my portfolio (and I’m fine with that); cash flow and appreciation are great, but I’m looking at the asset class as more of a long term hedge against inflation * not looking to leave my day job and / or replace W-2 income entirely with passive income * don’t need the cash flows from RE; again, I see the asset as a levered inflation-hedging play

I like the idea of a HELOC on your primary residence but believe the new tax rules will impact that on a taxable basis. 

Curious to know if there are any good loan options )other than hard or private) that self employed people can use with little to no taxable income.

Curious to know if there are any good loan options (other than hard or private) that self employed people can use with little to no taxable income.

However, (a) there are IRA/401k compliance concepts that you should be aware of and (b) you should develop an efficient method for accessing IRA capital - I'll often get introduced to syndicators that find dealing with IRA/401k money to be a huge nuisance, which it does not have to be.On most syndicated deals there will be leverage involved, resulting - potentially - in taxable UDFI to IRA investors.

No reason to make it taxable.

This would normally be taxable but since she qualifies for the sec 121 exemption it comes to her tax free and she reinvests the other $2.5 mil into passive long term 1031 compliant investments and that is her retirement fund.  

That appraised value will be used to determine the taxable income amount of the distribution. 

I have tax implication concerns as my tax guy has been depreciating 3/4's of my costs/capex given that I rent out the other 3 units; so I think that I could only avoid capital gains on 75% of the appreciation.Newbie question but if I did a cashout Refi, they proceeds after I pay-off my 1st mortgage aren't taxable, right?

@Linda Weygant my understanding was that properties purchased with 401k funds cannot benefit from depreciation, because the earnings from the 401k are not taxable.