Can real estate help high-income professionals build wealth more tax-efficiently? Dr. Allen and Stewart Heath, founder and CEO of Harvard Grace Capital, break down two Alabama commercial office opportunities: the fully leased Lakeview Center in Montgomery and the South Lake Medical Office in Hoover. They examine bonus depreciation, cost segregation, tax-free cash-out refinancing, and the risks behind the projected returns.
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Main Points:
- Review tax-free cash-out refinancing as a long-term wealth tool, since borrowed proceeds from real estate are generally not taxable.
- Evaluate cost segregation studies, which can reclassify part of a property’s price as personal property eligible for accelerated bonus depreciation.
- Understand that non-real estate professionals can use passive losses only against passive income, so confirm your personal tax position with your CPA.
- Stress-test projected returns by focusing on vacancy, interest rates, and exit cap rates, not just headline cash-on-cash yields.
- Match each investment to your goal, choosing income-focused Lakeview for current cash flow or value-add South Lake for long-term appreciation.
Connect with Stewart Heath:
- sheath@harvardgrace.com
- https://harvardgracecapital.com/
- https://www.instagram.com/chooseharvardgrace/
- https://www.facebook.com/stewart.heath.2025/
- https://www.linkedin.com/in/stewartoheath/