Selling houses, stay liquid or invest elsewhere?

[reconveteranParticipant 72]

I am currently listing two houses. One is a rental that has been nothing but a pain in the ass and I will break even on, the other is my seven year residence that I should clear a little north of $200k in this market. I don’t plan on buying for at least a year or two until the market cools and a correction drops prices. Plus, I don’t need a 6000sf f~~~ing mansion to impress anyone anymore. I will rent a small craftsman house for me and my son (half time), cut my monthly overhead by like $2k and have more time to play not having to work on the properties all the damn time. I can get another VA zero down loan (credit is decent, income is very solid, minus potential child support for the whore of Babylon paternity test pending). So I am wanting to stay liquid but worry about cash losing value in the volatility of todays world. How diverse should I go? Any financial wizards have advice for someone about to go totally liquid with assets? Thanks fellas.

[ghostParticipant]

If the rental is such a pain, get rid of it and invest in something else that is less stressful for you. If you are worried about an upcoming correction, then stay cash. Big Oil (Shell, BP, Total) all have attractive dividend yields and some room for capital appreciation. If oil doesn’t tank, they should be good bets.

As for the homestead, I would swap with a smaller residence but would keep some real estate in your portfolio. If it’s too big for you, sell it for something smaller in a better neighborhood where the land value is higher so you basically do an even swap. You also avoid the tax hit that way.

[reconveteranParticipant 72]

I won’t have to pay cap gains on less than 250k profit, which is part of the punch out decision. We have a 2% Real Estate Excise tax here but that is already factored in. I will however miss the mortgage interest deduction if I just rent for a year.

[ghostParticipant]

reconveteran wrote:

I won’t have to pay cap gains on less than 250k profit, which is part of the punch out decision.

I am of the opinion that you should ALWAYS own the place you live in. Taxes and everything are secondary. Real estate is a good investment from a human nature standpoint in that we tend to hold onto it longer and thus realize more gains over time. You also feel secure knowing you will always have a roof over your head. I would swap for an equally priced, smaller house.

[HydroParticipant 164]

I’m assuming the $200k you expect to get from selling your current house will all be needed for your next house. If that is indeed the case, cash is the simplest and best option for you. Don’t even bother with dividend paying stocks, because if there is a correction in the stock market there went your house money. You might also consider putting the money into one of the stable value funds if you can find one you like, but nothing more aggressive than that. No stocks, nothing fancy.

[JVBParticipant]

Stay liquid. Another crash is coming.

Peace is > piece.

[The man in the mountainParticipant 4102]

Don’t stay liquid too long, money is worth less and less every month that passes, The best thing you can do is invest in locally own businesses with trusted business partners, make sure to have them sign a contract or an agreement to pay you a monthly deal.

Invest in gold but not in RIA’s, don’t keep the gold in the safety deposit boxes because if SHTF you can consider it lost, in the great depression the government outlawed the use of gold so everyone had to hide it, the best thing to have is food reserves, gun, ammo and a plan when that happens.

Consider investing money abroad, there are construction companies, oil companies, all that good jazz that never goes out of work or style…

[BeerParticipant 11832]

reconveteran wrote:

I will however miss the mortgage interest deduction if I just rent for a year.

You know what is better than the mortgage interest deduction? Not paying mortgage interest. If you are going to downsize, not paying 4000 a year in interest or whatever to save 1300 dollars in taxes isn’t anything to worry about.

Literally the best place to be in tax wise for the average guy is to have as little as possible to write off and for the entire standard deduction to work in your favor…now let’s just all cross our fingers Trump can get something done with tax return and double the standard deduction like he wants to.

[reconveteranParticipant 72]

I already have two AR15s, several handguns, 5k rounds of ammo and body armor. My SHTF plan is the family farm, food and water not a problem. This cash is for investment growth and to add to the nest egg. I am not getting any younger.

[Anthont.AndersonParticipant 2]

Hay men I’m new to tha game and would like to start in tha real estate game I have not much experience in this I watch a lot of YouTube videos on real estate. I’m from St Louis Missouri and the market here is kind of Rocky but pretty much okay I found about 20 homes in the Inner City that can go any where from 2,500 to 25,000 I checked out about 20 homes and found five that are pretty much good in shape and I got about somewhere about 3 Grand and spin so would it be best for me to rent or to put them on the market to sell and is refinancing a home when I’m renting it out a good thing to do to buy more homes and basically make more liquid assets

[reconveteranParticipant 72]

Man if you can get into houses that cheap and keep them occupied with paying tenants, you could generate some good monthly quid.

[Anthont.AndersonParticipant 2]

St Louis is a great place besides tha crime…lots of $ Toto be made

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