Take 500K tax free gain or convert primary home to rental property

You guys should focus on OP instead of doing a psychoanalysis on me. :smile:

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Thanks manch !! I feel like you all know each other very well and also your investment strategy. I’m mainly lost without good mentor so seeking out help here !!

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Good mentor might not be able to help because most people either refuse to listen to others or listen to the wrong voice. You have to find a good path on your own.

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I brought up @hanera’s net worth ratio because based on my understanding he has 70% of his net worth in RE, only 30% in stocks. He talks non stop about stocks that may give people the wrong impression.

It’s much harder to make money in stocks than in RE. It’s all about psychology.

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Most of people has commented on house related question. Not getting much input on Index investment. I have history for past 3 good years . Has anyone done this for longer term and vouch for it.

Speak for yourself. All my net worth was derived from stocks. I made more money from stocks than anything I have ever made from RE.

They already tried removing prop 13, indirectly prop 10 and now state wide rent control on SFH.

Was it for rental property or all the property. If prop 13 goes away and taxes are base up on the current price I believe there will be blood on street. Lot of properties are not on market because of that. I see rental property around our area with cost bases of 150K and 2K property taxes. It will go up to 15K and they may decide to sell it.

Someone who won lotto has 100% of his net worth from that lottery ticket.

Ok. You are Superman. Enough about you. Let’s focus on OP.

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Not so! Now you are claiming I only got lucky. Give me a break. :rofl:

I said you are Superman. Not good enough? :man_shrugging:

Anyway, back to OP, purely on numbers, because RE is not volatile and banks won’t call your loans just because house prices drop, you can use insane leverage. Did you factor that in in your comparison with stocks?

I’m not Superman and don’t have super human abilities. You should go back and analyze my comments to make yourself a better stock investor.

I do not have much leverage as I have 70% equity in current home. Do not want to cash-refi to increase risk. I want to invest in RE if numbers make sense. Has anyone work with ICG group in bay area … They are like turn-key but mostly build newer properties in metro. Here is one of the property in Atlanta area with 9% Cash on cash with 25% down. Newer home so less maintenance. Off-course appreciation may not be as big as bay area but with principle pay down it may work out as low risk diversification

Low risk, low reward.

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Atlanta is not low risk. Risk comes from not understanding what makes Atlanta’s economy ticks and the ins and outs of its neighborhoods. We have a pretty good grasp on Bay Area. Most people including me have no clues about Atlanta.

I DCA into a S&P index fund since I landed in 2002, so gone through one major crash, 2008-9. Hardly look at it and too troublesome to compute the return since is fairly complex to compute. I think worth is 3x-4x of money put in, ignore effect of inflation. DRIP dividends.

@BAJacket knows quite a bit about Atlanta. I think he has rentals there.

To make tax free 175K you need to make 232K before tax

I guess what you mean is, the property price has to increase $232k above $1.35M to justify not saving the $175k tax.

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3 kudos, people won’t trust the right persons as they do not know who is right :rofl:

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None applicable now, but there are useless representative initiating such bills. More and more Dem are here, they will vote one day, esp state wide rent control for SFH. Prop 13 removal discussion on rentals (not primary)…Prop 10 was (failed) but hitting primary.