I figured it was a stretch for a guy with his own plane. As I always say “if I had ‘jay h.’ Money, I’d burn mine. “
@Travis Henry I think they should sell, pay the taxes, and buy the one SFH cash for themselves. Then use the remaining amount to invest in passive syndication deals, since that would be much more passive than the management of even one other rental. If I were retiring and wanting completely passive income, I would rather have a diversified portfolio of syndication deals, compared to active-passive deals where I would need to manage the asset, IMHO.
I agree with others to split everything 50-50 between their children.
Sell or do as a corporate rental.
Hi @Travis Henry ! Remember when I came to town for that SDIRA conference? Of the two guys who ran it, one is a haole who grew up getting thrown off ships as a cast member at the Polynesian Cultural Center (he can explain it funnier than I can) and who is a CPA and Attorney and very smart. Looks like he is back in Hawaii for a Nov. 23rd event. I wholeheartedly endorse giving him a call to see if he can help your parents structure the right deal...from all angles. You can learn more about him at https://markjkohler.com/about/
And for anyone else out there, Mark, and his Scottsdale partner Mat Sorenson https://kkoslawyers.com/lawyers/mathew-n-sorensen/ are always the smartest guys in the room.
1.2 Mil is a lot of equity to be sitting in one or two doors. If invested properly, the capital can be spread across thousands of income rental properties mitigating the risk while still producing solid cashflow...
Not sure your Grandparents employment or income status, but if they do not qualify for a traditional loan, even if they do, a HELOC on the Hawaii property will allow them to buy a property in Vegas with cash before the Hawaii property sells. Once it sells they can just pay off the HELOC.