Buying a Slip

[Cheechako]

The price of "holes in the water" has always amazed me. But having said that, I've been amazed at how purchased slips have increased in value here in the PNW. So I don't see much of a downside. I helped to sell a buddy's family's estate boat that was in a purchased slip earlier this year. The old derelict boat we finally got rid of, but people were clamoring to buy the slip. Couldn't get to the boat without people asking as their "buddy wants to buy a slip on this dock."
The downside to owning is, of course, that you cant just move to a location where you want. Check to be sure you can sublet if you are an owner.

[CTew]

Thanks to all who submitted responses. Lots of thoughtful information to ponder.

As for the investment side of it, I am not really looking to make a dime as much as I am looking to not lose one. I plan to live retirement by the old wise guy adage that many a sailor no doubt espouses too as well - You should draw your last breath while spending your last buck.

Again many thanks for the great and kind responses to my first post.

[Charlie]

Originally Posted by Badsanta

My tax attorney said that I could not exchange investment property for personal property without tax consequences.

He is correct. But if you exchange a rental property for a slip that is real estate you are not exchanging for "personal property.' There is a ruling by the IRS that allows you to move into a house that was held as an investment and then sell it as your personal residence. So if you buy a slip and rent it foe a certain period of time then move into it yourself you have created a parallel situation.

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[piloto]

Well here's a thought. In a 1031 exchange, the criteria is "like for like", with the possible exception of the investment migrating to residential. After that, it's about value amount between the two properties. You must use an intermediary and have arms length on the transactions. The difference becomes the basis for the next transaction. So it's not rally about capital gains, it's about translating existing agreed upon value of each property relative to the other. At least, that's been my experience.


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[belizesailor]

Another thought on 1031 exchange. IIRC it must be transfered from/to the same entity (individual or company). Espcially in the litigious USA, I would never hold a potential rental property, or something with liability potential like a slip, directly in my name. Best to set it up in a corp to limit liability and confirm the details in preparation for an exchange.

[Fishman_Tx]

The problem I'm having is finding a slip in a marina that allows liveaboards. Everything that pops up on an internet search is in condo style or community style facilities and do not allow liveaboards at all and most are highly restrictive to like 7 days per month staying on the boat. Hell, there's 8 weekend days alone (and sometimes 10) in every month. This will not do.

Any leads on east or gulf coast marinas with slips for sale to liveaboards?