Avoid deals in poor locations with high vacancy rates, overpriced properties, significant deferred maintenance, and unclear financials.

A 1031 exchange could also defer taxes if reinvesting in a better cash-flowing property.

A Solo 401(k) may be advantageous for self-employed individuals, offering the potential for participant loans, higher contributions, and no custodian fees, as well as higher contribution limits and the option for tax-deferred or Roth contributions.This post does not create a CPA-Client relationship.

Whether it still makes sense will depend on how much you can defer vs. the basis.

A post on recapture.People are concerned about recapture when they cost segregate their improvements and for good reason.Recapture is real, and those deferred taxes will need to be paid.But fear not!

Selling for $380k means an $80k taxable gain at long-term capital gains rates (0%, 15%, or 20%, depending on income).The $80k HELOC used for personal debts doesn’t affect your taxes.A 1031 exchange could defer taxes, but you’d need to reinvest in another investment property, not a home for your mom.

In general, I would say Kitchen, Bathrooms and any deferred maintenance should be your focused items. 

This would be an opportunity to discuss deferred payments and a 5 year balloon. 

Use depreciation on rental properties to reduce taxes further, and consider 1031 exchanges to defer capital gains taxes.

Tax Deferred, Taxable and Real Estate.