AJ you sounds like a tax guy!
SECURE Act, sorry I did not hear about this and I don’t know about it. I do not hold any rentals within a retirement account.
As I understand it, the money you take out of a ROTH is free and clear when your over 55?. They (IRS) has not comeback on it and it has been over 10 to 15 years. After reading my comment I should have been clearer. Taking money out, not putting Real Estate in, sorry.
Yes, you must repair, fix and replace, it is part of ownership. As noted all repairs are write-offs but at a cost that will lessen your income. Sometimes at a great cost, roofs and exterior paint as good examples. Your rents should cover this.
Something you might consider is principal payments. Don’t forget what you pay principle with your loan. Add this to your total return.
Yes, recapture depreciation and capital gains when you sell your rental are a big factor. I am not planning to sell my rentals. When I sell my home/house then move into one of the rentals, there will be no taxes on this. I think you have to own and live in the house for 4 years. The tax code will have much more, please read.
I agree the taxes for the rentals will kill me. My plan is to die before selling. Death is the only way to get out of taxes.
Management, ~6%, it is a cost, but I live close so I don’t need management, yet. When I get older, maybe. When you own few rentals and live nearby, why management? I have the time and the skill.
Future events are always something to think about. I don’t think they will increase the cost/taxes on property. The government will like to change it but they don’t want to p-ss off the big guys.
My rentals are in California, near the coast, they have appreciated to the extreme. They will decline in value with a decline in the economy. I expect this, I do not like it.
Where else can you put your money and make money? I’ve had stocks and bonds, they tax you. I do like retirement accounts but they hit you for taxes when you take it out and you better make the correct choices. Real Estate is taxed when you sell and when you rent but you get income and a good write-off (20 years). If you never sell your Real Estate you wont get taxed and you get any write-offs. Additionally when you die it gets revalued for your child/children.
Inflation, 2% na, say 6% which I think is low. The goverment said 4% , go to the store, get a new loan, buy a car all well above 4%. What I really don’t understand is 2% inflation, why not 0% with a 2% difference? This is just a hope. I lived with 13%, 6% is still low.
Sorry for any misconceptions I provided.