Villages home investors-- What to buy next?
 

Suppose you are 75 yrs +, kids grown, have owned a patio villa, tenant moved out, and you're thinking of selling it. But what next ? and where ? Put proceeds in the bank ? Look in North Carolina ? Roll it over.. 1031 ...into another rental home? A different 55+ community like Margaritaville or James Plantation? Donation to MSPCA? Simplify life and put it in an S&P index fund ? Always enjoy the intelligent comments of the forum.

how about trading into an UPREIT?

UPREIT: Benefits and Qualifications in Real Estate Investing

If I were 75+ there is no way I would want to own RE outside my primary residence. Unfortunately only you can define your goals. If you don’t need the money then you could donate it to charity, or travel, invest and make it part of your estate. It really depends on your financial wellbeing and what your goals are at this point in your life.

I have never liked REITs ever since I actually read the prospectus for one of them. The best way to make money with an REIT is to start one yourself. You pay yourself a huge salary as the CEO, and hire your friends, like an attorney, an accountant, a real estate agent, etc. and pay them big salaries. Then, you hire a stock broker to sell shares and you invest the money in real estate. If you lose money on the real estate, so what, you still get your salary and expenses and make a lot of friends happy. And, as long as you do what it says in the prospectus, you have no accountability for losing money. It's a great deal for you.

The real estate market is soft right now. It might not be all that easy to sell. If you can easily find another long term tenant, using whatever means you used to get the current one, then I would consider doing that.

If you decide to sell instead fine, it is certainly less headache than having a tenant. I would not then turn around and buy another rental property. You would suffer transaction costs and be no better off. I definitely would not buy a remotely located rental property. Then you are into an expensive management company and you will make no money.

In terms of what to do with the proceeds, I am not sure anyone can advise you intelligently without out knowing your financial situation and the asset classes of the rest of your portfolio.

Lets say for the purposes of discussion that the PV is owned free-and-clear and worth $300K. And lets neglect taxes for a moment. How much of your total investment portfolio does that represent? 1%, 10% 50% ?. If its 1%, then do whatever you feel like.....have fun If its 10% then look for an overall balance between real estate, stocks bonds etc. You do an asset allocation. If its 50%, then you put it in money markets and draw a few percent per year to help with living expenses.

Gee, that's too bad. CUBE, which I bought 2/24/2009 @$1.63/share is up only 2,299.78% since then according to my Vanguard statement today. Of course it has paid great dividends over the years.

I commend you for being successful. But, if I were 40 years younger, I would create my own REIT, and make a ton of money.

Buy land and donate it to Ducks Unlimited or Pheasants Unlimited or Rocky Mountain Elk Foundation. Protect every acre you can from scumbag developers.

We sold our rental villa 4 years ago when I was 75. I gave the check to my wife and she bought high yield CD's with it with one year to go and I told her when they mature it's my turn and I think I'll just spend it and then learn to live alone.

Buy a gold miner ETF and some physical coin held by you. Thank me later.

Well, I’m only 63. And my long-term tenant has moved out of my villa and I currently have it up for sale.
Two bedroom located on the Water if anybody is interested
And I’m selling it cheaper than I bought it for so I don’t have to worry about taxes and nor am I reinvesting

Has ducks unlimited actually bought property and protected it? If so where?

Selling Courtyard
 

Roll it over in a 1031 investment. Let them invest and have the headaches, you save big on taxes, but ties up your money for a little while.

Also not knowing your financial situation in life…
Give one third to your grown-up kids, put 1/3 in stocks and bonds, use the last 1/3 to get some really nice stuff you always wanted or go see places you’ve always wanted to see.
At 75 you’re a little bit past halfway to the finish line. 😇

There have been years when REITs (Real Estate Investment Trusts) have outperformed the market substantially and years when it has underperformed by a long ways. If you don’t know what they will do in the next year, be very careful.

REITs have done a lot of good by buying up hundreds of thousands of marginal homes, fixing them up, and reselling to new buyers or renting to people who want to rent homes or apartments or condos. Granted. However, they also introduced apps with algorithms that make sure they ask the top dollar they can get. When the houses nearby match that, they ask for more. The effect is for rentals and home prices to go up much faster than normal because everyone using these apps are on the same page.

Because REITs control millions of houses and apartments, their effect is huge. Thus, it can be argued that despite the good REITs have done, they are responsible for a large share of the huge rise in housing and rental prices across the country. Many renters have seen increases of $500 a month or more at once, then found that most of the other rental units in town have done the same. Okay, great for investors, but a lot of the homelessness today is due to renters being forced onto the streets because they certainly aren’t getting $500 a month raises to make up the difference.

[QUOTE=mvbird;2454476]Suppose you are 75 yrs +, kids grown, have owned a patio villa, tenant moved out, and you're thinking of selling it. But what next ?

Before giving it away? Do you have enough funds to pay $10-15k a month for up to ten years if you end up needing asst living, 24/7 home care, or nursing home? Live where you will have most friends your age and stay active! Make sure you have beneficiaries TOD on every single account you own from checking to retirement to investments. If you know where you’re going to be buried, go ahead and pre-pay for funeral. If you have someone you trust, get a joint checking account with them for 10 K or more if you have to have your body shipped to another state for burial so they can pay any bills or expenses after you pass and before the life insurance is paid and accounts are dispersed. Look carefully at your will and make sure the executor does not have to be in the same state you are. Look at probate cost, and pick your final place accordingly. Going through a nightmare right now because Mom inadvertently left off beneficiaries on her CDs. Enjoy the life you have and live every day to the fullest.

We each have a dirt knap coming soon enough. Enjoy what you have while you can before your health starts to fail. Make sure you have enough money to fund any healthcare needs you could have if things go poorly. Let your kids worry about any money left over.

My suggestion is to pass on the proceeds to your beneficiaries now, so that they can use the money, instead of them waiting for your estate distribution. But only if you don't need the money and if you have living beneficiaries.

Otherwise, I would invest into high quality dividend stocks and live off of that . . a mixture of different industry ETFS, or even better, muni bonds which are tax free. . . much more liquid and much easier to manage in your estate

Sell, and go live you bucket list.

No matter what your age, you always want to invest to make money. IMO, I would get into some good index funds, not bonds, that are not risky, low expense costs, good dividends, and increase in value, over 20% growth. I have a couple dozen that perform like this so they are out there.
You will never make money in cds, or annuities.

I would buy a 911 Porsche...and that is exactly what I did :pepper2:

Unrecaptured capital gains
 

I agree it might be better to find another renter or roll it over. Any depreciation you claimed will be taxable at 25% even if you sell at a loss.

You will could still owe taxes if you claimed depreciation on the rental.

Absolutely. Here is one news article.

Ducks Unlimited Builds On History Of Success To Launch $3 Billion Campaign

Sell it. Take the proceeds and take an around the world cruise or take several smaller cruises spread out among the different seasons.

Life is not a bowl full of cherries for all multifamily (apartment) REITS. This one has been around a very long time but needs to sell its underperforming properties and close shop. The incompetents who took over its management several years ago went in for ESG and DEI. It had previously performed well since 1960 as WRIT. Top DC'-'area landlord changes name to Elme Communities '-' WTOP News

Yes, I own a few shares, thankfully very few. Elme Communities takes steps to liquidate

So you only enjoy a small portion of them?

Really, Martha’s Vineyard? Worried about what to do with a patio villa? I’m calling BS on this one. Just saying

I totally disagree, there comes a point when you become more interested in your family, friends, personal pleasure choices than investing for another nickel. Take the money and run, have lots of fun and share the happiness. Unless you're dead broke and need the nickels to feed yourself, you can have a nice end of life plan.

very good point and consideration!

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