Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
3y
@Janet Gonzales why? Why not just sell the home and not pay anything in Capital gains taxes (IRS Section 121) as the primary resident of the home. Then use that profit to purchase a rental home that will cash flow.
Flipper · Mission Viejo, CA · Member since 2014 · 2k+ posts · 1k+ votes
3y
@Janet Gonzales why? Why not just sell the home and not pay anything in Capital gains taxes (IRS Section 121) as the primary resident of the home. Then use that profit to purchase a rental home that will cash flow.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
You definately sell, especially if it or you are in California. You’re going to avoid at least a 35% combined tax. You’d have to earn $100k to net the $75k that you’re going to save in taxes.
Before you do anything, you need to figure out what your options are with the equity, or selling the property outright.
There are so many different routes you can take. Multi family, Single family, STR, MTR, LTR, flips, syndications, etc...
I'd recommend start reading a few books so you can learn what strategy may be the best fit for you in your life right now. Check out a few beginner BiggerPockets books, Set for Life, How to Invest in Real Estate, and The House Hacking Strategy. From there, talk with a local investor/agent to get an idea where the market is now (in your area), where its headed, and if selling makes sense for you right now or not.
Bought my primary resident in 2015, currently have $285K in equity and would like to turn into passive income. Not sure where to start.
Here are some ideas to use your primary residence to create passive income:
1. Do some research to determine if using a part of your home as AirBnB would work.
2. Since you have $285K in equity you may consider tapping the equity to use it to purchase or as a downpayment on an investment property that throws off cash
Before you do anything, you need to figure out what your options are with the equity, or selling the property outright.
There are so many different routes you can take. Multi family, Single family, STR, MTR, LTR, flips, syndications, etc...
I'd recommend start reading a few books so you can learn what strategy may be the best fit for you in your life right now. Check out a few beginner BiggerPockets books, Set for Life, How to Invest in Real Estate, and The House Hacking Strategy. From there, talk with a local investor/agent to get an idea where the market is now (in your area), where its headed, and if selling makes sense for you right now or not.
There are many ways you can go about this as many have mentioned. If you want true passive income look into becoming a limited partner in a syndication. I would go to as many real estate meet ups as I could to meet prominent investors in your community as well as educating yourself.
Investor · Seattle, WA · Member since 2015 · 43 posts · 19 votes
3y
Hi Janet, just upvoted your post for visibility. I have over 3,000 apartment units and focus on educating investors like yourself on the different ways one can achieve their goals through passive investing. Reach out if you are interested in chatting more!
Hi Janet, just upvoted your post for visibility. I have over 3,000 apartment units and focus on educating investors like yourself on the different ways one can achieve their goals through passive investing. Reach out if you are interested in chatting more!
Hello Elisa, hope you are well. At the time of this writing my score was 650 and I didn't have a job. As of today, I have a job and my score is 575. There is something I'm not doing correctly and are in need of your professional opinion.
My goal is to get some of the equity out of my home so that I can invest with the cash while preparing my home for as a rental that will generate $1,000 per month.
Investor · Denver, CO · Member since 2023 · 161 posts · 52 votes
3y
Hey Janet,
You may be interested in syndications. I work at a firm that specializes in helping clients invest in passive real estate funds. These are private placements, not REITS, and are the answer if one wants both passive cash flow and growth. These usually have 5-7 year hold periods and cash flow around 10-12% annualized, paid monthly. We see syndications out-perform our client's self-owned rental properties.