Posted by Robert (NC) on February 20, 2002 at 06:54:55:
William,
As with almost everything. It depends.
What are your long range goals ?
If you own 6 properties and are wondering what to do, then it might be time to find a good financial planner, or estate planner to help you figure out your long range goals. If you go this rought, find one that owns real esteate investments, since they will have a better understanding of what you are doing.
If you are building a portfolio of rental properties, do you want duplex’s, more SFH, or more up to an apartment complex ? maybe move into some other commercial stuff like a small office building. ?
So many things you can do, but you MUST know where you are going. I"m just getting started. My wife and I have laid out our short range, mid range, and long range goals and the results we expect to see from each one. As we go along we can then evaluate what to do with each property based on the goals we have.
So where do you want to be financially and in real estate in 5 years, 10 years, 15 etc…
Happy Investing…
Robert (NC)
P.s… Wish I was already where you are I’d personally sell the duplex, and look for a good deal on an commercial property AFTER starting a self directed Roth IRA through MId-Ohio securities so I could use hte IRA to invest in the commerical property.
When it is a good time to sell? I have a two Family that I totaly
rehabed.My wife and I lived here for about 2.5 years.The
property would have a cash flow of about $400.00 a month.If If it were fully rented.The
Wife and are buying a single family. If I sell
the profit will be about 40K should I hold or take the money
and reinvest in something bigger to move upward.I have purchased five properties in the past two years but have never sold one I am so confused on what to do.
Posted by ken in sc on February 20, 2002 at 09:03:03:
I bought a duplex and lived in half as my first ever investment. It was treated as half owner occupied and half investment property as far as taxes. Thus, with today’s tax laws (No tax on gain of personal residence) you have some options if you sell. I personally would consider exchanging the half that is investment and thus paying no taxes on that, and then just selling the other half and taking the money TAX FREE. Anytime I can take money tax free, I am just inclined to do so.
This, of course, does not mean selling twice or selling each half seperately. It just has to do with how you take the proceeds of selling the whole property one time. If you are buying rentals, you need to learn about exchanges. John Schaub has an excellent tape course for about $150 at JohnSchaub.com.
Posted by Ben (NJ) on February 20, 2002 at 07:42:27:
Look into doing a 1031 exchange. It’s saved me tons in taxes. Your other alternative is to do a cash out-refi,
thereby pulling out non-taxable cash. John T. Reed has a great book on this topic “Aggressive Tax Avoidance for Real Estate Investors”