All Forum Posts by: Daniel Choi

@Joe Homs

Love the response! Bought at 540 and it seems to be worth 580. I might be mistaken but if I use a 1031, I can escape the 40k capital gains tax? If I just sold and did not reinvest, then after taxes and re agent fees and closing costs I would probably break even.

Good advice about the 10 year cycle. Sounds like: 1) sell now and lose nothing (and wait to invest during the down season), or 2) hold on, lose money each month, and hope for marginal appreciation. Am I understanding this correctly? Any other word of wisdom? Thank you!

@Michael Skoczylas

Thanks for the reply! Would definitely love to hear more!

@Kendra Levy

Thanks for the reply! I guess my question is how much higher can it get? Have we pretty much hit the ceiling? Thanks!

Hey all! New to BP. Would love all of your thoughts. Please be brutally honest! I own a townhome in Ladera Ranch, CA. Its a really nice neighborhood. Bought in 2019 pretty high. We recently moved to KY. This townhouse was our residence. We are now renting it out. 

Pros of the property:

1) really nice townhouse, end unit, young families love to live in this area. I don't really seem demand going down. Super safe. Lots of parks. Very unique. 

2) Has appreciated 40K this past year (but I'm not sure its going to get any higher). Now worth 580K

3) I have a good PM, so I don't think too much about the property

4) well built house that doesn't have many problems

Cons:

1) negative cash flow 150-250/month (though I would be pretty fine taking the hit at this point in time)

2) not sure if the area is going to appreciate any more

Our options seem to be:

1. Sell the house, do a 1031 and buy in Louisville (maybe a 4 plex?) that can cash flow

2. Sell the house (and break even) and wait for the market to cool before buying again

3. Accept the negative cash flow and raise the rent every year. 

Main questions: How does one know if an area will appreciate any more? (My friend's parents have a townhome in SF Bay area that appreciated 300%) and what should I do? Thanks ya'll!