Originally Posted by kevdude
Calmloki, I'm curious what you decided to do here.
Lately I've started looking at DST's and I think they could be decent investments, after all. It seems the sponsors probably do much better, but if you're fine with a 5%-6% return on your full investment after selling costs, i.e. no taxes, then it could make sense. Especially considering you still get all the tax advantages and and have a totally passive real estate investment. I don't think there would be much appreciation, though, since the offering prices that I've seen are quite a bit higher than the original investment in the properties.
I was looking at our returns on our equity in our properties and we are around 5%. Part of that, though, is due to the incredible appreciation we've seen in the Seattle area. So, if I'm fine with 5% while we are managing the properties ourselves, why not accept the 5% with no effort on our part?
This is how feel about DSTs also. You are paying high fees but you are taking a significant amount of work/stress off your plate. Most of us landlords are good at focusing on our good investments but not as good about remember how much that new HVAC really cost, how long that one unit was actually empty, how much that one eviction hurt, etc.... My eventual plan is to sell the rentals and diversify into a bunch of DST and similar investments.
Hoping to get out around September 1, 2022... I hope, I hope, I hope. Until then off to work I go....