Real estate and retirement

4 Replies

I currently have (1) duplex that i'm house hacking in, collecting about half the mortgage as payment and covering the other half with my day job income. I'm also putting away money into 401k (roth) from my job as it's giving away free money matching.

Unfortunately the support from work is not giving me adequate tools to plan my future considering my real estate and my goals.

My plan is to keep the real estate until i can suck out all the depreciation (or most) then exchange like-kind property to not have to pay that money back. Not considering passing any of this in inheritence (no kids, plans) so i just need to maximize my returns.

What is a good estimate to use regarding retirement funding from both rental property and 401k? Any tips?

Finally, this may be a legal question (changing based on location). Would i be able to exchange a "like-kind" property from this duplex to a single family home, keep it an investment property and move into it say a year or two after? Would there be any penalties or fees that i would have to pay back for this?

Thanks for the help,


@Tomasz Kaminski

Not what you want to hear, but you're planning your trip without determining your destination.

A house-hacking duplex and a 401k will not let you retire anytime soon. Get with a good accountant or a good financial planner (careful with the latter, since they're usually salesmen more than advisors) and figure out your long-term plans and how retirement works. 

To your specific question - yes, you can exchange a duplex into a single family home or several of them. Yes, you can eventually move into your investment property if it was not your plan during an exchange. But this is not what you should focus on now. These are details. Get the big picture first.

@Tomasz Kaminski   @Michael Plaks is spot on. A bad "financial advisor" can do more harm than good. Work with someone that is good, doesn't work for an insurance company, or accept any sort of sales commissions.  Here's a list I put together as a starting point for finding a good advisor. (Yes, good advisors exist.)

In general, look for a Financial Advisor that is

  • Fee Only - Fee based can work as well, really it depends on the firm
  • Independent - They don't work for an insurance company and are not limited in their investment options
  • Fiduciary - Legally required to put your interests ahead of their own
  • Certified Financial Planner - CFP is the preferred designation
  • Personally investing in real estate - This is pretty rare. In fact, I can't think of any other advisor I've ever met.

And make sure to check their FINRA record on Broker Check...It's suprising how many people go around calling themselves financial advisors without even registering with FINRA... Stay away from those guys...

Broker Check (FINRA)

XY Planning Network, Garrett Planning Network, and NAFPA all have "Find an Advisor" sections you can use to try to find someone that fits your situation. You can search by location and hopefully find someone that is a good fit.

The CFP Board has put together a list of questions to ask a prospective financial advisor. Obviously make sure to ask questions about how they would incorporate Real Estate into your overall plan.

Ten Questions to Ask Your Financial Advisor

Best of Luck! Feel free to reach out if you have any questions.

Originally posted by @Tomasz Kaminski :

Thanks for the information. Is there a resource here on BP for financial planners?

This forum features several financial planners, as well as 20+ tax accountants who provide financial advisory. Spend couple hours browsing this forum, reading replies to questions related to overall financial planning and wealth accumulation. You will find a lot of solid advice from experienced investors and from professional advisors. Contact those advisors whose answers you like.