Real Estate and retirement
We have a 6 unit building that is almost/could be paid off that we have owned for 25 years. I am planning on retiring in the next few months. We live in a single family home with 3.5 per cent interest rate that has about 20 years to go on a 30 year mortgage. Should I buy a 3 flat by selling my building and have another number of depreciation years but half the income from the new rental property or keep the 6 because my pay will be less and deal with no depreciation write off.
Terry Says
I think that’s a question you should discuss with your CPA who knows your entire financial picture. But let me add another element. In these uncertain times, the qualify of your tenants matters a lot. RIght now, evictions are on hold. Presumably you have a good relationship with your long-time tenants and a good idea of whether they will be able to eventually make up any rent concessions But you won’t have that history in a new building. And you might have a tough time evicting a non-rent payer!
