What would you do with a house worth $1.1m??

Sell it. Buy four cheaper houses. Rent them out.

>written by Robert Shiller
kek

This.
Somebody with enough money to rent a 1mil house could afford to mortgage it themselves. Unless you could split the house up into apartments which would be costly and may still not provide a good rental opportunity.

sell it and buy 4 berkshire hathaway stocks

I'd start doing cash-out refis. Put that money to work.

You'd be stupid to just sit on 1M in equity and just "see what happens" to the market.

Assuming the house is owned free and clear and $1.1 million is a large part of your net worth, sell it and invest the proceeds in a cheaper rental property and stocks. Use some leverage to acquire the rental property. You'll get a better ROA and you'll be more diversified.

>Obviously I'm not selling shit
Haha what? How is that obvious? If I came into a house worth that much I'd sell it in a heartbeat, then buy a place for $250k and quit working. That's assuming you had no other investments, if you do you could live quite luxuriously.

1)If in the US, you could live in it a couple of years and get $250K of the profit excluded from tax. And you don't know the value will keep rising.

2) Sounds like more of a reason to sell it, not less.

If you can afford to pay the property taxes, dividing it out into units is the best way.

HOw big is it?

>quit working
I never understood this meme, why not just cut down on work and earn more principle funding for even more investments?

There's no reason to quit working on SOMETHING.

To be honest, I'd probably work eight hours a week even if I just got stupid rich just to have something to do.

I'd run out of shit to do with just all my life to do whatever I want.

It doesn't help that I'm introverted as fuck so I need a reason to go out and talk to people.

You could do that too if that's your priority. I'm guessing the OP doesn't have a whole lot of other assets, or he wouldn't pose the question as he did, and my point was that I would want to diversify from one illiquid house into a smaller house and equities.

You're not gonna be able to rent out a $1.1 million dollar home. Large $ home renters are rare, and even if you could find them you don't want them.

You should sell the home. Buy yourself a small home to live in. And maybe buy another home $250k as a rental property.

If anything home values are going to stagnate or go down. Now is a good time to sell a home. Expecting it to go up is foolish. Especially when you consider property taxes and homeowner insurance.

This is what I would do

Former real estate student here

How many interior sq feet does the home have?

What is the lot sq footage?

What are the comps in the neighborhood as well as within that area?

If you were to rent it out, I'd advise hiring a property manager. A professional company, likely one that is established. It will cost you some money but it's better than having to do shit yourself.

>home value will keep rising
That's not how real estate works. There are bubbles and markets. Buyer's markets where conditions favor those willing to buy a property. Seller's markets where conditions are in favor of those selling a property. A seller’s market materializes when more people are trying to buy a property than those who are willing to sell at the moment.

And then neutral markets.

I would bet money that no one has ever bought a home that substantial with a HUD loan or a Section 8 voucher.

This

Buy a damn multiplex

Or a fucking trailer park and be like Mr. Lahey.

That home is likely not worth 1.1 mil

It would probably appraise at under a million.

This. Unless it's fucking NYC where they do co-ops, OP couldn't rent that place to anyone. No one who can afford to rent a place over $1 million would just sit there living under a landlord.

Bump

fucking really, nigger?

anyway, my first thought would be to sell and buy either a multifamily building, multiple single family units, or invest the money otherwise. unfortunately, with a house that expensive you'll get fucked pretty hard in taxes, so instead i'd probably go with airbnb.

>airbnb

Are you serious, dude?

OP, the faggot he is, should sell the goddamn thing before it's too late and he has to live in his big LARP mansion by himself.

forbes.com/sites/andrewcave/2016/12/31/airbnb-comes-of-age-and-causes-a-tax-investigation/#3f512aeb725c

Also, Airbnb doesn't like to pay their taxes allegedly.

if he inherited the house and never lived in it he'll get absolutely fucked on taxes when he sells it.

if that's the case and assuming it's actually a nice, large house in a desirable area and not a piece of shit in a bubble then i'd rather keep it and run it as a bed and breakfast or use airbnb. if it's the latter then obvious selling makes more sense.

Only certain types of homes can be uses as B&B's, you novice fuck. If it's a 5 bed colonial, how are you going to turn that into a B&B? Most are Victorians.

Also he lives and works half way across the country. So if someone decided to destroy his home, how would he be able to take care of it? He wouldn't.

I'd sell the fucking thing within the next few months because prices are tanking and they will even further. The equity in the home alone will cover the taxes, you moron. Even if the house were in fucking Costa Mesa, CA, the taxes would be less than 10 grand.

Get schooled, kid.

i'm talking about the income tax he'd have to pay, you fucking moron. or did you think that all the money minus closing costs will magically go into his pocket?

Whether you’ll pay taxes—and if so, how much—depends on how long you’ve been in your home. If you’ve lived there for at least two of the last five years, you can pocket up to $250,000 in profits tax-free; $500,000 for couples filing jointly. Anything over that, you’ll pay capital gains taxes.

For assets owned less than a year, you’ll pay taxes at your regular tax rate. Long-term gains are taxed depending on your income; nothing up to $72,500 (couples), 15% up to $450,000, above that it’s 20%.

To calculate your gain, first subtract selling expenses, such as agent commissions and other closing costs, from the sale price. Then you need to calculate your “basis.” This is what you paid for your home, plus some of the closing expenses from the purchase, such as title insurance and recording fees (but not loan points or lender fees), and the costs of any permanent improvements, like a swimming pool or new addition. See IRS Publication 523 for complete details.

There are some exceptions to the two-year rule. If you become disabled, are forced to sell because of a job relocation that requires you to move at least 50 miles away, need to seek medical treatment or care for a sick relative, or other “unforeseen circumstances,” you can pro-rate the taxes on the profit. Check IRS rules and consult a tax advisor. It’s complicated.

notice how i said if he inherited it and if he never lived there in my previous post he'll get fucked on taxes. thanks for affirming what i said, though.

unless you think 15% on 450k and 20% past that for a 1.1mil home is negligible, in which case you are far better off than i am.

You guys have no idea what you're talking about. Houses around here are worth between 1 and 2 mil and get rented constantly. They usually run between $4-$6K a month. It's all about location.

You think 1-2 million is a lot, dude? I've driven past homes worth more than that on a daily basis.

Fuck outta here with that bullshit

Also, I never said people DON'T rent luxury homes, but it's uncommon in most areas. The most expensive rental I know of in my local area is in Kennett Square, PA and fully furnished would be around $4500/mo

They aren't luxury homes, dumbfuck, and I never said they were, or that a million was a lot.
Holy fuck, go put words in someone else's mouth, shithead.

OP here.

It's not a luxury home. And it's in the suburbs of a very attractive city, which explains the value.

1650 sq feet.

I see nearby houses being rented out for ~$4k/month.

OH so it's Commiefornia or somewhere in the West Coast

I'm the one who told him to sell in the first place and you want to piggyback off of me now. I see. Typical real estate drama bullshit. One asswipe thinking they're better than everyone else and that they know more than everyone else.

It's obviously east or west coast, yes. Sure as shit not somewhere in the middle, lmao.

Nah it's west coast. You talk like some fucking California moron who has more money than sense. Hopefully the bank takes it from you and someone else with some common sense can take care of it.

just consult an accountant and sell it. 4k a month for a 1.1 million house is dogshit. around here 200-300k houses rent for about 1% of the value per month, i.e. 2-3k.

Stay mad, midwest poorfag.

I'm the 4th post, asking him why he wasn't planning on selling.
Just keep embarrassing yourself, you stupid hick.

I live in the East Coast actually. Close to NYC and DC. Stay poor, LARPfag

You're a fucking moron. I don't like using ad hominem much but you really are.

>You're a fucking moron
Look who's talking. You tried to accuse someone who posted before you of "piggybacking".

>I don't like using ad hominem much
Lol, you just called another user a "moron" 5 posts ago, so you're a fucking liar, too.

guy. I'm poor and I know what to do with that you lazy idiot. Hire a property manager and rent that shit to rich lazy vacationers. You don't deserve your money trust fun baby