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A curious question for you. Did you do a 1031 on this property to your current property in Maine?
If so, I have a similar situation that I'd like to do as well in the future.
No, I did the 1031 'like-kind' exchange going from a California property to a Scotland property. Then later going from the Scotland property to a Connecticut property.
To buy our Maine homestead, I refinanced the Connecticut property to cash-out as much as I could, then I used that cash to buy land in Maine and build a house.
As for the Rental Real Estate that we own in Maine, we paid cash for it.
Going from one Multi-Family-Residence to another Multi-Family-Residence [whether they be Tri-plexes or Four-plexes or even twenty-plexes] are all 'like-kind' activities. I guess I could have done the 1031 exchange going from our Tri-plex in Connecticut, and transferring it to our Fourteen-plex in Maine, except there were seven years between those transactions. I think 1031 exchanges have a 3 year time limit to them.
We washed our hands of the Connecticut property in 2009, and we did not buy the Fourteen-plex property in Maine until 2016.
Aren't you wish you were able to kept the property instead?
Unless I lived there 'no'. Property Managers are too expensive. We had one Property Manager that turned out to be fairly crooked.
The only property that I sometimes wish we still owned was the Scotland property. I really enjoyed living in that culture. But when the US Navy closed the base, sailors who had mortgages there were pretty much all foreclosed on. If I had retired there and found a local job, then I would have been able to keep a visa. I would really like to own a home in Scotland now, to go spend a few weeks there every year, on vacation.
No, I did the 1031 'like-kind' exchange going from a California property to a Scotland property. Then later going from the Scotland property to a Connecticut property.
To buy our Maine homestead, I refinanced the Connecticut property to cash-out as much as I could, then I used that cash to buy land in Maine and build a house.
As for the Rental Real Estate that we own in Maine, we paid cash for it.
Going from one Multi-Family-Residence to another Multi-Family-Residence [whether they be Tri-plexes or Four-plexes or even twenty-plexes] are all 'like-kind' activities. I guess I could have done the 1031 exchange going from our Tri-plex in Connecticut, and transferring it to our Fourteen-plex in Maine, except there were seven years between those transactions. I think 1031 exchanges have a 3 year time limit to them.
We washed our hands of the Connecticut property in 2009, and we did not buy the Fourteen-plex property in Maine until 2016.
Thanks for sharing, Submariner. It does help to learn from other's experience like yours.
Heck yeah. First mortgage I've carried in twenty years. At these interest rates what's the problem? And when I die, let them deal with it (my current 30 yr (recently refied) runs until I'm 101). Just make sure there is no early payoff penalty and the %-age is fixed.
With interest rates like this (budgeting considered as usual) and on a stable fixed income, like many retirees, your FICO score is more important than your bank account balance. Services (like remodels, plumbers, gardeners, housekeeping, etc) have gotten very expensive and those are "cash" transactions so as a senior citizen that no longer does that stuff, you need to hoard cash.
Just curious where you live? Twinbrook 9 was one on my early life phone extensions in Waltham MA. It became 899.
It was our goal to be retired without a mortgage. We did not want to have any debt while being retired.
Our achieved that goal, and we were debt-free for the first 19 years of living on a pension.
But in 2016 we made an investment which led to one thing after another, and by the end of 2019 we needed another infusion of cash to get our investment running. So in January of 2020, we mortgaged our farm.
We are quickly paying off our debt, and I plan to have the mortgage paid off before the end of 2021.
I am ashamed to say that I do, today, have debt.
Did you not have a bankruptcy along the way? What were the circumstances?
I don't know if you have checked, but the Central California area is *no longer* a LCOL area. I'd imagine Submariner's 1 acre property is well-over $700K by now, if not more.
I just went by what he posted of a $75,000 property selling for only $5000 more ten years later. Inflation adjusted he lost money. I call that a LCOL area.
Just curious where you live? Twinbrook 9 was one on my early life phone extensions in Waltham MA. It became 899.
TW9 was an exchange that covered a large chunk of north Detroit and Hamtramck.
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