Should I stay or should I go?

[Walter Fabiszewski]

I know everyone is asking the same question: what’s going to happen with the real estate market this year and next? I just got a great deal on a condominium which after purchase and renovations should yield me about $35,000 in equity. My initial thought was to move into this unit, live in it for 2 years and sell without having to pay capital gains tax. I would also plan on renting out the unit I am currently living in for about two years and selling that as a primary residence for two of the past five years and avoid capital gains taxes as well. Now I’m beginning to think that I should sell my current condo and cash out while the market is hot. Then I will be liquid if the market tanks in a year or so and possibly double my portfolio. OR Should I keep everything and just keep collecting rents like I have been adding one unit to my portfolio?

Any thoughts?