Updated over 5 years ago on . Most recent reply
Exit Strategy for Retiring Landlords
First-time poster. My wife and I are new investors, looking to buy single-family or small multi-family in the Northern suburbs of Fort Worth. In the 7-habits of highly effective people, Steven Covey states you should start with the end in mind. My question is for landlords who are "retiring" from the real estate investing or approaching that point in the next few years. What is the exit strategy for someone who has built a portfolio of 20 or fewer units, and wants to retire from the business?
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If you sell, you pay capital gains on the upside. If you leave it to your heirs, the upside is part of your estate, subject to estate tax exclusion. And then your heirs will get the properties with the cost basis set at that time. Seems like that is a good reason not to ever sell.