All Forum Posts by: James Park

Below is the ranking of the 25 best beaches in the United States ranked by travel advisor in 2015. Florida takes 9 of the top 25 spots, Hawaii takes 7 spots and California takes 5 spots. California's state income tax is 13.3%, Hawaii's state income tax is 11.0%, and Florida is 0. Siesta Key, St Petes, Clear Water, Panama City, and Fort Myers are all located in the west coast side of Florida. Pensacola Beach and Panama City Beach is located in the Gulf.

About a year ago, I had lunch with a very successful entrepreneur whom I met through Bigger Pockets. He was a GA resident and sold two businesses and was looking to relocate to Tampa area since they were empty nesters and financially free. One advice he gave me is to make sure I domicile my residency in Florida couple years before I decide to sell off my businesses and real estate assets. He wanted spend is 4 months Nov, Dec, Jan, Feb) out of year next to the beach in FL and 8 months in GA. I would love a retirement lifestyle like that :)  

i see many financially independent and wealthy households in atlanta move to florida particularly in the tampa bay area in west coast florida. The summers are definitely brutal, but florida is a 0 state income tax state. Anywhere u live in california, you will be taxed at the highest level for your retirement income. Personally i think that florida beaches are more beautiful than the califorinia beaches.

The western florida coast is absolutely gorgeous along siesta key beach, sarasota, up to clear water beach. This is one my favorite places to visit for beautiful beaches and deep sea fishing in January.

Although my plans may change, my retirement goal is to build a $200k passive income real estate portfolio in atlanta and live in a beach front home in the west coast florida While enjoying the benefits of living in a zero income tax state.

@Chris Case,

I am firm believer in owning a portfolio Single family homes is the way to go if you are looking for a truly passive retirement portfolio. When you are buying a multi-family, you are most likely dealing with another investor who knows how to negotiate, which is not the case when you buy SFR investments. You will also have much better quality longer term tenants than you would with apartments or multi-family. SFR Tenants will most likely take care of minor repairs to the home, which is not likely the case if you have a multi-family or an apartment tenant. I try to network with other top commercial brokers in my area, but what I have found out is that none of them own commercial investments themselves for their long term retirement planning, however most of them own a nice portfolio of single family homes and a few own multi-family. They told me that the reason for this is if the economy goes south like the last financial crisis, not everyone needs to rent office/industrial space, or retail, but everyone needs a roof over their head which is why they prefer SFRs and multi-family over commericial.

I say this because I always thought that SFRs are where the newbie investors start and eventually graduate to multi-family, apartments, and commerical. I now realize that I was wrong. My plan today is to start with a nice portfolio of SFRs and will end with free and clear A class SFRs for my real estate retirement portfolio. Most importantly, SFR tenants are very easy to manage. My current tenants probably call me either once or twice a year. You want a tenant who pays you on time, takes great care of your property as if it their own, and never calls you. You can get this type of tenants when you own A and B class SFRs in desirable 9 to 10 rated school zone neighborhoods.

The 10 year treasury bond bottomed at 1.95% on January 1941 rose to 14.59% as of January of 1982 making it a 40 year interest rising environment. 

What asset classes rises and falls in an interest rising environment? Couple things that come to mind is that dollar will further strengthen as foreign capital will flow into the U.S. CD laddering would be a good strategy in an interest rising environment. Banks and Financial blue chips stocks should do well when rates are rising. I would think that landlords would also benefit as rents will rise as home affordability gets tougher. Gold does well when rates are fall, but not when rates rise.

What other asset classes would rise and fall in an interesting rising environment? 

As of April 2015, Altanta's real estate market is currently slightly under 11% from its last peak before the crash on July 2007. The market crashed 39.5% to March 2012 Bottom and bounced back 28.57%. From Jan 2015 - April 2015, we are up 2.2% and at this rate, we should have higher appreciation than 2014's 5.2% appreciation.

Imagine that each one of the blue dots below is a blue chip stock like Coca Cola or Apple. The chart below shows the correlation of Job Growth vs Appreciation. Both Denver and San Francisco had the highest double digit appreication in the last 12 months, with Dallas following closely at 9%. Portland, OR is an outlier with a slower job growth but a higher 12 month yield. You can see that Atlanta metro's job growth is in line with San Francisco, Miami, Charlotte, Dallas, and Seattle. I believe that blue dots located in the lower right of the chart have a lot of growth potential. It seems like the big money (capital appreciation) has already been made in cities like Denver, San Franciso, and Dallas. The real estate market in Denver and Dallas are already making new highs. 

Atlanta area job growth rate second highest in the U.S according the Gwinnett Daily Post

http://m.gwinnettdailypost.com/news/2015/jul/10/ar...

Look at the most recent "2015 Best States for Business" ranking by CNBC. Texas is ranked #2 and Colorado is ranked #4 and both the real estate markets in these two states have surpassed its pre-2008 peak prices and making new highs.

There is a reason why the IRS gives the greatest tax breaks to entrepeneurs, who creates jobs, and real estate investors who provides housing. Personally, I would look to have my buy and hold real estate investments in a Pro-business tax friendly state.

http://www.cnbc.com/id/101747925