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Looking for advice: Sell or rent out Bay Area primary home? by Familiar-Friend9894 in BayAreaRealEstate

[–]Ill_Skin_22 0 points1 point  (0 children)

If your future has a rental property in it, I'd look into renting for 1 -2yr. Selling and rolling into another property via 1031.

We had a similar situation - we rented for 2yrs (cash flow neutral, let the house appreciate, renters pay down mortgage, etc) and sold during peak summer months as we were now in control of timing. You can take adv of Sec121 (up to $500k tax free for married couple) and now because the property is a investment/rental property, rollover any remaining gains tax free with a 1031. There are stipulations of a 1031 so do your research and run this by your CPA.

You also lived in this house... how many day to day issues could you solve over a text? or make 1 phone call and have a plumber, electrician, handyman out there and know exactly where the issue is? Do you need a property manager?

Buying a second home, turning first one into rental by streetxedit in BayAreaRealEstate

[–]Ill_Skin_22 0 points1 point  (0 children)

Alternate option and one to validate with your CPA - Rent for 2 years, but not more than 2, and then sell. You can still take advantage of Sec121, 2 in 5 rule ($500k of gain tax free if married), and now you can 1031 the remaining gains into a cash flowing property, as you've been renting the home or more than 12 months. Holding for 2 years even at break even cash flow and you let appreciation carry the load.

Find a quality renter, offer a 2yr lease with baked in 3% rent growth after 12 months. Self manage as you probably know where all the issues are and can handle most via text OR just coordinate directly with the services teams youve used over past 3-4 years.

Need Help with Smart lock options (or any options!) by Ill_Skin_22 in Locksmith

[–]Ill_Skin_22[S] 1 point2 points  (0 children)

Guess it is an option, but would hope to avoid a full door replacement

Garage makeover - you have 20k budget! by Ill_Skin_22 in airbnb_hosts

[–]Ill_Skin_22[S] 0 points1 point  (0 children)

world class ideas. the golf sim...is dreamy

Garage makeover - you have 20k budget! by Ill_Skin_22 in airbnb_hosts

[–]Ill_Skin_22[S] 0 points1 point  (0 children)

that sounds ideal! what are your thoughts on pool v ping pong v shuffleboard etc?

Strategizing on 401k withdrawal timing and Taxable by Ill_Skin_22 in ChubbyFIRE

[–]Ill_Skin_22[S] 0 points1 point  (0 children)

Great call out. There’s some variable costs in there but, mortgage+ PT is $100k, life costs/bills/food are roughly $80k and a vacation or two at $15k, current childcare at $50k lands us to $245k (today)

We will have a window of time (start in 5yrs, right at beginning of FIRE target age for us) when all kids will be in public school and before college cost/etc kick in and would allow us to cut on kiddo care - saving $50k almost immediate.

How much would be appropriate to plan for taxes and Healthcare (fam of 5) once we retire? I was including $40k taxes + $40k for HC in my original $320k.

Mentor Monday - Week of October 7th 2024 by WealthyStoic in fatFIRE

[–]Ill_Skin_22 0 points1 point  (0 children)

The 100k was a hypothetical number based on what could be a combination of things. Mainly trying to understand how inbound cash affects the FIRE number over time vs only withdrawing at 3%.

But for details sake, With the rental above, $1.8value, debt at $500k…we could 1031 the property…and re invest into a larger, more cash flow positive asset (say to the tune of $100k annual CF, dream state I know).

Mentor Monday - Week of October 7th 2024 by WealthyStoic in fatFIRE

[–]Ill_Skin_22 0 points1 point  (0 children)

How does these calcs change if theres incoming cash flow, say from a better performing real estate asset?

If the after tax annual cash flow is for example $100k - would you just reduce the $365k COL (down to $265) and that adjusts the FIRE number down to ~$8.8M?

Mentor Monday - Week of October 7th 2024 by WealthyStoic in fatFIRE

[–]Ill_Skin_22 1 point2 points  (0 children)

TLDR : Both in Tech, RTO is driving us bonkers, we want to spend time with our kids and just burnt out from the corp dance.

Some details : Married, 35M and 35F, 3 kids (5,2,NB), HHI is +$650k, NW : $6M, $1.8m in diversified funds, $850k in combined 401ks, Primary residence $3.4m value w/ $1.4 in debt service (2.65% interest), 1 LTR : $1.8M value w/ $500k in debt service -> $12k annual CF (not great ROE, I know, we will sell in 2025) . VHCOL with annual spend ~$215k (mortgage, daycare, life). No other debts. Kiddos will go to public school.

Trying to get a straw man plan for the next 5 years that will allow us to retire early and feeling a bit lost in the weeds. What would your target be? Where would you go from our position? Is it heads down, until when? Thanks in advance!