All Forum Posts by: Rich Chen

Try homes.com and truepeoplesearch

Leverage in this case produces negative cash flow monthly unless sell the home after 5 yr. Investors are counting on home appreciating..by a lot  to make the investment worthwhile, and assuming no rent gap w tenants. IMO, unless cash flow positive, it would be a dicey choice

@Davaris Bennett No

@Dave Foster thanks sounds like 1031 is the way to go as we could retain more investment capital.  Will research more on that.  

Thanks, I'll look into doing a 1031 exchange. It seems like a better approach than selling outright since it offers deferred tax benefits.

What tools do people use to research rental markets? I want to analyze things like job growth, vacancy rates, and population trends. Is Zillow sufficient, or are there better options?

So it sounds like selling the current rental property isn't recommended, and refinancing might be the better option. Given the high interest rates, though, is it still a good idea to take loan from the bank?

We own a rental property that was our previous starter home. The condo was purchased around 450k and it has been paid off. The home is now valued at around 700-800k. It is currently generates $3k monthly.

We're looking into either get a HELOC or sell the condo to purchase 2 rentals in cheaper areas. Still doing research on rental areas.

I'm not really familiar with how all of this works but feel like I'm sitting on enough money to get more out of what we have, instead of building our wealth. I appreciate any guidance.

Appreciation for the advice. It appears logical not to sell the primary residence once it's fully paid off, considering the associated taxes and fees. Instead, leveraging it to invest in rental properties seems more advantageous. However, I remain skeptical about purchasing property as a primary residence being a sound investment. From my perspective, homeownership primarily serves as a hedge against inflation. It represents a passive investment option for individuals seeking to save money beyond traditional savings accounts, without delving into more complex investment strategies.

You are right, it would be $4.3 milion after 30 yrs. My appreciation estimate is wrong. Yes, factoring in inflation 2%, the profit is -$100,000. 

Adding the maintenance roughly 1-2% annual costs, 30 years would probably cost around $400,000. So now the total profit is -$500,000 after 30 years of owning the house. Not so good. 

In my view, tax benefits are almost negligible ($10,000 max annual deductible), the tax on capital gain in $2.8 million would be around $850,000 (federal + state tax), total profit is -$1,350,000. 

Yes, renting is much worse, I'm in agreement with you. But still, why would anyone want to invest on sth that destined to loseas much as $1.3 million after 30 years of investment??

Let's say one just wanted to live in a house and start a family, and then what's the point of owning from financial perspective? Equity will take time to build.

By the time one has paid off the loan, the house would worth, say, 2 million dollars after 30 years. With the interest and tax occurred at 1 million total, and 1 million principle paid, the ROI is ZERO.