Flipper/Rehabber · Holbrook, NY · Member since 2014 · 5 posts · 0 votes
I’m looking to start buying rental properties for my children (5 and 3). I’d like to use the brrrr method to keep buying more rentals for and put the profit each month into an index fund or some other kind of investment vehicle. Does anyone have and advice or suggestions as to go about doing this?
@Chris D'Auria I have been mulling the same thing. I don't have a definitive answer for you, but I'll share what I am planning to do (pending Atty's input). I plan to buy the property(s) in the name of my children. I can loan them the downpayment money and gift them a portion of its repayment each year until it is diminished. (you can gift $14k/year tax-free I believe) I intend to place the property into a Trust that I manage on their behalf. Proceeds can go into tax-deferred accounts (529, IRA, etc).
My intention is to help them avoid capital gains taxes upon my passing while also providing income for their savings now.