A well-designed asset protection strategy limits liability, preserves wealth, and strengthens your defenses if challenges arise.To navigate these areas with confidence, build a team that includes a tax professional experienced in real estate and an asset protection attorney aligned with your long-term goals.

A well-designed asset protection strategy limits liability, preserves wealth, and strengthens your defenses if challenges arise.To navigate these areas with confidence, build a team that includes a tax professional experienced in real estate and an asset protection attorney aligned with your long-term goals.

Consider a 1031 Exchange:If you sell your Medford rental and reinvest the proceeds into another like-kind investment property, a 1031 exchange can defer capital gains taxes.This is especially attractive if your goal is to scale into higher cash-flow or better-performing markets while preserving your equity.Timing, rules, and proper guidance from a CPA or 1031 specialist are critical to execute this correctly.Other considerations:ADU potential is great for long-term value, but if you can’t fund it now, it’s more of a future option.HELOC or second mortgage: As you noted, rates on rentals are high, so probably not ideal right now.Taxes: Selling your former primary that has never been your current residence won’t give you primary residence capital gains exclusion, but since this was a rental, that may not apply anyway - something to confirm with your CPA.If your priority is financial peace, lowering high-interest debt, and increasing cash reserves, selling the rental and paying down your primary could make the most sense right now.If your priority is long-term cash flow and scaling your portfolio, consider selling and using the capital to acquire small multifamily properties that are cash-flow positive - either outright or through a 1031 exchange to defer taxes.Raising rent is a moderate option if you want to keep the property without selling, but it may only marginally improve your position.Given your flexibility and market knowledge as a realtor, you could likely identify solid small multifamily or even single-family deals that would make option 3 (with or without a 1031) a strong path for long-term wealth.Always happy to share more on what's worked for other investors.

It gives you the largest combined tax benefit (two properties producing depreciation), preserves the §121 exclusion on your old home, and keeps financing costs low enough to actually enjoy the write-offs.- Depreciation + home sale exclusion + better financing = strong tax play.- You can always layer on LLC structuring later as your portfolio grows.This post does not create a CPA-Client relationship.

@Andrew Foster some decent advice here, but also some feedback from those who really don't have enough info to support their perspective.Many DIY investors price repairs on materials only and forget about labor as they do their own work.We're a PMC in Metro Detroit, but here's how our process would work:1) MoveOut Video & Pics used to create Scope Of Work (SOW)2) SOW broken down into Priority Categories:- Health & Safety- Government Required (municipality/S8 inspection requirements)- Property Preservation- Marketing Impact / Tenant Retention- Miscellaneous3) Bids obtained if we feel work will exceed Owner Approval Threshold4) Bid sent & discussed with owner to, "redline to their budget"5) Work begins once owner approves & funds6) Completion video/pics providedOf course, while this is going on our Marketing Dept would be doing a rental analysis & ad, and discussing with owner.

They are meant to preserve capital, generate consistent income, and reduce portfolio volatility.Not every investment should check every box.

Thus preserving my capitol. 

Yes, he was doing this too, preserving the option to NOT cut if the data moves.In other words, the Fed will probably cut rates .25% but if the data changes, they won’t.Adding to My PortfolioI’m putting my money where my keyboard is: just picked up this nice little duplex here in Nashville’s growing Donnelson area, just south of the famous Grand Ole Opry.Plan is to renovate the kitchens, throw down new flooring, repair the roof (a tree fell on it), paint/scrape the popcorn ceiling, and spuce up the bathrooms.

Travelling with the family in Oaxaca Mexico, incredible place, one of the important culturap states in the country where indegenous costums are preserved🤗.I am currently short the DOW and as of today slightly up on that option trade, my only open one as everything else is incrediboy unpredictable and volatile.I am excited to jump into Kai's course full steam when I get back, very excired about that.

Just be mindful of variable rates, and double-check terms like draw period and repayment structure.Since you're looking to grow a portfolio, preserving equity and liquidity is key.