Author Topic: So I bought my first O zone property yesterday  (Read 577 times)


  • 5 O'Clock Shadow
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So I bought my first O zone property yesterday
« on: August 06, 2019, 10:47:19 AM »
Its an experiment, but the stars seemed to align. I already have a few properties in the same neighborhood that we bought 2010 to 2012 so I know the economics. It is a gentrifying area. I make a reasonable amount of money shorting stocks and so i have a lot of short term cap gains in the Federal 37% +3.8% and NJ 8.9%  for a marginal tax rate of 49.7%. I got a 3 apt building for $122k, (the land is $60k and $62k for the structure) and I will have to spend $62k fixing. Once fixed I think I can get $1.5k per unit/month. The opportunity zone fund (basically an LLC) is held 50% 50% as a partnership with my wife. I have pre-written a plan to improve the property over the next 31 months. The flip side is the $184k of gains Im using would have cost me $90k in tax in April gets deferred to april 2027, and reduced by 15% - if i keep my end of the bargain, and when I sell before 2048 any gain is tax free.

I'm interested to learn if anyone else has done this / watch outs / strategies etc.


  • Senior Mustachian
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  • Age: 39
  • Location: Toronto, Ontario, Canada
Re: So I bought my first O zone property yesterday
« Reply #1 on: August 07, 2019, 08:28:24 AM »
"O-Zone is a Moldovan Eurodance trio that was active from 1998 to 2005 and consisted of Dan Balan, Radu SÓrbu and Arsenie Todiraș. The group gained global popularity with their song "Dragostea Din Tei" and their subsequent album DiscO-Zone. The group re-united in 2017 for 2 concerts in Chișinău and Bucharest."