Buying rental properties for my kids
2 Replies
Chris D'Auria
Flipper/Rehabber from Holbrook, NY
posted 28 days ago
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?
William Morgan
Fix & Flip or Hold from San Luis Obispo, California
replied 28 days ago
@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.
Chris D'Auria
Flipper/Rehabber from Holbrook, NY
replied 28 days ago
@William Morgan , thanks for the info. I know I’ll have to talk to my accountant and lawyer to see what works best for them.
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