All Forum Posts by: Ray S.

I know they say you should never time the market, and I 100% agree. But for someone already selling a property now, would it be wise to try and sit on the sidelines now since many are saying we may be at the top of a market cycle? Would it be better to cash out, pay the taxes and sit on the cash to see if this really plays out to the downside in the near future? My intentions in that case would be to pick up some properties at a later date if that occurs and we start seeing some deals. Or is it always better to 1031 exchange the property and just deal with whatever happens in the market?  Do investment properties, such as multi families take as big a hit if the market pulls back or we hit a recession? I.e. would I get an opportunity to buy a lot cheaper if the market did pull back, or would it be marginal compared to what I'd lose if I paid the taxes?

Or another option is to roll just the profit portion into an opportunity zone fund and then put the rest of the cash on the side. In that case I'd still be in the game without paying taxes on the gains just yet, and have a good amount of cash to play with if the market does pull back. I know nobody has a crystal ball, just looking for some thoughts on the best way to play this.

Thanks 

I bought my multifamily as a short sale, added value, and can cash out now with some good profit. The property values are topping in the area and starting to see a decline, and I am not seeing rental prices or demand increase over the years. It's also in a flood zone and the insurance keeps shooting higher each year. It's about a 5 cap now. Ideally I want to 1031 exchange it. I own it 100%. Do I go bigger and take on some debt? Find a higher cap rate property? Break it up into 2 or more properties? Move to short term rentals? Move the profits to an OZ fund and then keep the rest of the cash on the side until a good opportunity or pullback comes? Any other suggestions?

Thanks 

This year I got clobbered on some stock investments but am also considering selling a property that will have some gains. Can I offset the gains of the property with the stock losses? 

I bought a property a couple years ago, rehabbed it, and rented it for a few years. I don't have a mortgage on it, the property has appreciated about 30%, and the current cap rate based on the current market value of the property is around 5%. A couple bad points about the house is that it's in a flood zone, so the insurance is very high and I fear it could continue to rise. I also was hoping to get a property with a higher cap rate, or that allows short term rentals.

The question is, should I sell this property and 1031 exchange it to 1 or more better performing properties? Or should I keep it, pull 75% out with a mortgage and use that to buy another property? If I got a mortgage, the current rent would only just cover the mortgage, so there would be no cashflow on this property and I would just be banking on the money paying down the mortgage and the chance of appreciation and/or rent rising. 

Thoughts? 

I was looking at the Opera recently and would have loved to pick up a unit there but found out the condo association is planning to outlaw short-term rentals so I bailed on that. The Grand still allows them, but I would check if they have any plans to do the same. Are you trying to buy a place to rent out or do rental arbitrage?