Equity Recycling via a 1031 Exchange | PPhREI Network Roundup | 2-10-2023

In this PPhREI Network roundup, we learn how to recycle equity with a 1031 exchange, get a report on my Indy portfolio, and learn if FIRE discourages doctors from working.

This post may contain affiliate links.

Carpe Diem MD

In this post, Ian Cook describes the 1031 exchange and the “reverse” 1031 exchange. This is an advanced tax mitigation strategy to trade one piece of investment property for another (tax free). That’s right, you get to sell your investment and delay capital gains taxes, possibly indefinitely.

The downsides are some pretty strict timelines and the fact that you have to sell your property. There are other ways to tap your equity, like HELOCs or cash out refinances. However, these options have intrinsic limitations due to loan to value limits. So if you want to put your full real estate equity to use without taxes, the 1031 exchange is a way to do it.

I’m considering a 1031 exchange for my apartment buildings in Indianapolis, so I went back to re-read this post. Ian Cook also describes the “reverse” 1031 exchange, which tweaks the order of operations a bit.

Read the original post on the Carpe Diem MD blog: 1031 Exchange vs the “Reverse” 1031 Exchange

The Darwinian Doctor

In this post, I shared a full year of data from our real estate portfolio in Indianapolis. Out of our portfolio of 28 units, 23 of them are in Indianapolis. Except for last year when we focused on short term rental, the majority of our energy has been spent there as well.

This report shows the tail end of our renovation and stabilization efforts, as we improved units and rented them out, with a concurrent improvement of our cash flow.

Read the original post on the Darwinian Doctor blog: 2022 Rental Income Report from our Indianapolis Portfolio

The Prudent Plastic Surgeon

In this post, Jordan Frey addresses a common complaint, that the FIRE movement discourages doctors from working. It’s a natural question when “FIRE” has the words “retire early” in the acronym. But Jordan points out that virtually all examples of doctors you see who are FIRE disciples are still working after hitting financial independence.

He goes into more detail in the post and argues that FIRE is a good phenomenon for the doctor community.

Read the original post on the Prudent Plastic Surgeon blog: Does the FIRE Movement Discourage Doctors?

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