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Updated over 2 years ago,
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Convenient to sell or keep? how much taxes will I pay?
I have a triplex I bought in 6+ years ago for 190k, I refinanced and got some cash out, now I owe to the bank 350k and my cash flow is minimal after refinance ($100-200) and now I live far away and because the home is old things have been breaking more often than before($$$$) and contractors do not do a good job if you're not there present in my experience (fix same thing over and over)
The triplex is really old and outdated, but I get renters because is in a really good location and I foresee it will continue to appreciate or at least investors might be interested in buying , tearing down and building something fancy.
So I've been thinking about selling. how much will I make if I sell?
this is my thought process:
A) sell 500k, minus 7% closing, agent commission = 465k minus 350k to the bank = 115k minus 30% capital gain tax = 77k....by the way, will I pay tax capital gains on the net profit? or the gross profit sale? (if I pay on gross sale then it's 500k - capital gain gross sale (30%) = 150k to Sam!
B) sell 500k, minus 7% closing, agent commission = 465k minus 350k to the bank, then do 1031 exchange for those 115k but (as previous debt cannot be used in 1031 exchange) and buy a similar property, the only "problem" is that I live in NYC and 115k will not even buy me a studio here, unless I go to a foreclosure and buy something there
C) keep the property, fix a bunch of things 50k, live with the headache of maintaining a property at the distance, do not make any cash flow for years but hopefully sell in the future for a profit.
thoughts?