Our model (buy, rehab, refinance to return capital, hold w investors forever) turns out to work well with the Opportunity Zone rules. Bizarrely, a few LA 'hoods, in which we've done ~20 deals, are OZs (bizarre bc they didn't need the help). Starting to look closely at this now.
As I understand it, opportunity zones give a discount on your capital gains when you sell. If your model is to never sell why would opportunity zones work well with your model? Any suggestion of synergy seems like a stretch.
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You're missing several key advantages. Worth googling, but: can defer cap gain tax on sale of asset today for up to 10 yrs and gain is reduced by 10% or so. We can refi out the cash after like 24 months... So have your cash mostly back, don't pay tax for 10yrs *Not tax advice
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Your mode is to never sell. Capital gains is not triggered by a refinance. So if I’m missing several key advantages, which are the ones I’m missing that benefit your model?
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