When does it make sense to hold real estate "until the wheels fall off" versus flipping for quick profits—and how does cost segregation factor into that decision?
In this final episode with Diana Gipe from Core, Angel and Diana explore investment philosophy and timing in an uncertain economic environment. Diana reveals how recapture obligations diminish over time, making long-term holds more attractive from a tax perspective. Angel shares her residential investing background and preference for infinite returns through extended ownership, questioning the 3-5 year multifamily flip model. They discuss current economic uncertainty, rising grocery costs as inflation indicators, and why few investors actually plan short-term exits despite market pressures. This conversation covers the intersection of tax strategy, investment philosophy, and market timing, plus Core's additional services including energy efficiency tax credits.
[00:01 - 04:00] Recapture Mechanics and Investment Timeline
How recapture obligations are based on original purchase price, not sale price
Why holding properties 3-5+ years significantly reduces or eliminates recapture fees
The conservative approach to cost segregation that preserves ongoing straight-line depreciation benefits
[04:01 - 08:00] Investment Philosophy: Hold vs. Flip
Angel's residential background of holding properties "until the wheels fall off"
Why infinite returns through long-term ownership appeal more than quick flips
Diana's observation that few investors actually plan short-term exits despite market talk
[08:01 - 11:00] Economic Uncertainty and Market Timing
How current economic volatility makes short-term exit planning risky
Real-world inflation examples: grocery costs rising from $1,000 to $1,250+ monthly
Historical perspective on interest rates and the "golden era" ending
[11:01 - 13:15] Additional Tax Benefits and Services
Energy efficiency tax credits: 179D for new construction (up to 80 cents per square foot)
HVAC, lighting, and window replacement credits for existing properties
Why solar is challenging in hail-prone areas but wind energy may be viable
Key Quotes:
"The longer you hold it, the smaller the recapture gets. That's why we say three to five years... by then there's not even a recapture fee to look at." - Diana Gipe
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