Would you rather own a partnership in 10% of 50 rental properties, or own 100% of 5 rental properties? Why?

If you gave yourself permission to go spend $20,000 as fun money, what would you spend it on?

I had a great coaching call with Tyler today. He clarified a lot about velocity banking for me and gave me really useful tips on my first step to get started. I'm going to make calls very soon to find my first HELOC. Thanks, Tyler.

Tyler responded to my curiosity about a "better way" than the traditional mortgage. I'm here to learn and save/make money. I'd love to hear your stories. xo Jena

While a lot of people want to use the down payment hack to buy a new home every year...remember that there is capital gains tax due on a home sale if you didn't live in it as your primary residence for at least 2 of the last 5 years. That may not bother you if you're for sure going to keep all of your properties as rentals. But, just remember life changes in ways you don't anticipate and its nice to have the option of selling a home if it appreciated in value a lot and not have to pay tax on it. I am going through this myself right now...last year I converted a home I use to live in for 3 years to a rental, and it cash flows $937/month. I didn't anticipate selling it anytime soon. But, I had a change of heart and am now going to sell it because the $220k equity sitting in it would be tax free. It doesn't make sense to hold onto it for future appreciation because the market is looking shaky, I've already gained a good amount of equity and holding on for future growth would result in me being subject to capital gains. If its worth $650k now and I can get $220k cash now, or continue to hold and maybe get 3% (If were lucky) appreciation, I'd have to hold it for another 2.5 years just to break even with where I'm at due to how much the tax would take away (assuming a 20% capital gains rate). And that's IF the market keeps going up...probably pretty likely due to Utah's economy being strong and the FED being addicted to printing money. But there is always a risk it depreciates as well. I'd rather take the sure profit now that will pay off another property which has a monthly mortgage payment of $1,288/month. Yes I lose the $937/month, but I increase overall cash flow by $1,288/month which is a net $351/month gain. $351/month gain and less risk with two less mortgages in my name is a win. Sometimes it makes more sense to take some chips off the table.