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

by The Darwinian Doctor

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?

Make sure to subscribe to the newsletter so you don’t miss any posts!

Subscribe to the Darwinian Doctor newsletter and get a free copy of my eBook: “How to Control Your Financial Destiny”

* indicates required

Want to support the blog?

Perhaps you’re more of a Facebook type?

Are you a physician, spouse, or professional and you’re interested in using Real Estate to gain financial freedom? Join us in our Facebook group and accelerate your journey!

You may also like

Notify of
Inline Feedbacks
View all comments
profile-pic (4)

Hot off the press and on sale for a limited time!

My eBook will give you the tools to get started on the path to financial freedom. Learn about my financial journey and the shockingly simple math behind financial independence. Then find out how to define your Why to fuel your success!

Don't Miss A Post

A Darwinian Disclaimer

Since everyone is different, it may not be appropriate to generalize my doctorly advice to your own situation. Please run all medical, life, and financial advice by your own physician or financial professionals before applying it to your own life! Consider all information for your entertainment only!

Images and Copyright

To the best of my knowledge, the images used in this blog are either taken by my own camera, free stock photos, or considered allowable usage under "Fair Use" law. Please let me know if you believe otherwise.

Affiliate Policy

Affiliate Policy
As you explore the site, you may notice links to goods or services. I may earn a commision if you use a link to purchase any of these. While this blog is really just a labor of love and a creative outlet, if I can "keep the lights on" with affiliate links, all the better. Rest assured any reviews you read here represent my unbiased opinions, and there is no added cost to you to utilize the links. Please go here to read my full Affiliate policy.

Evolution Holdings LLC
All rights reserved.

@2024 – All Right Reserved.

Would love your thoughts, please comment.x