Rental Property Investor · Los Angeles · Member since 2021 · 10 posts · 4 votes
Hi everyone, my name is Rouanne, I'm a newbie so bear with me, I currently hold 100k in stocks and 75k in IRA. I invested in the tech sector 3 years ago so they are considered long term investments. I want to liquidate my stocks in order to invest in a duplex or two in GA, I'm CA based. I chose GA because I have a family friend that sells off market. I've already used the rental calculator and the numbers are great. I won't touch my IRA but I'm debating whether I should sell all my stocks and go full force in real estate investing or will the capital gains tax hurt me? Please help with suggestions/advice. Thank you!
You should not liquidate all of your stocks to buy real estate. Never put all the eggs in a basket and hope it works out.
I'd figure out the tax consequences of selling 50-65% of your stocks and find a realistic budget (PP + rehab) for a duplex. Then I'd do more market research and focus on neighborhoods where local investors are buying, selling, and flipping. It's tough to reinvent the wheel on the first deal. Find something that cash-flows or something with less risk. Extensive rehab = risk. Avoid that if you can you'll be on the right track. The first one is the hardest.
Jaron is right, don't fully dive right in without testing the water first. Spend $50 on a few real estate books and dig in to whether owning rentals is right for you. There are many ways to invest in real estate, and owning your own rentals isn't the only way.
@Jaron Walling The family friend I mentioned earlier that sells off market listings, well he's also a local investor and has a few duplexes across the street from the property of interest so base on his information and experience, I feel confident in the area. It's a turn key property, management company is already in place and cash flow is over $600. I'm already set on one but debating whether I should do two duplexes. I'll still have a little left in stocks and I'm not touching my IRA, do you still consider that I'm putting all eggs in one basket?
@Taylor L. I'm currently paying a mortgage on my primary residence, currently setting it up for STR for the weekends and now I want to dabble with rental properties. You think I should start one at a time? I'm really eager to purchase two duplexes especially if the cash flow is there.