[quote=AN][quote=moneymaker]Totally agree investors are chasing returns and when that starts to turn there will be a run by most, not all, but enough to cause a crash. Just like in the last bubble burst, not everyone lost there place though at times it seemed like it.[/quote]Investors and not speculator wouldn’t sell unless you see a big crash in rent as well. Why would investors/landlords sell and have to pay taxes on the gain while they’re cash flowing positive? If anything, I see them extracting equity to buy even more rental if price crash and rent doesn’t.[/quote]
Exactly. I see three exit strategies.
1. Cash out refinance.
2. 1031 exchange.
3. (Used along with either 1 or 2 ) death…and Inheritance and subsequent step up cost basis when your kids take over, eliminating depreciation recapture and resetting cost basis of capital gains. Of course, this nice tax benefit will probably be eliminated in the future
