thinking about the "2 in 5 capital gains" rule Bushwick/ BedStuy Brooklyn

[Anthony Gallagher]

Hi BP folks!

We have a Bushwick-BedStuy, Brooklyn double duplex / 2 family close to the Halsey Brown line stop.  It is fully rented and cash flows 3k+/month. We bought in 2013 for $800k, renovated in 2016, refi'd & moved out  Jan 2021 and bought in L.A.  For the 2021 refi, the property appraised for $1.7.  We still have about 50% equity in the property at 3.25% interest rate which is now considered an investment property.  It cash flows about 3k/month.   

At this point we're considering our options to take advantage of the "2 in 5 rule" to capture max capital gains which would mean selling in this depressed economy OR to choose to hold for a much longer term to capitalize on the long term asset appreciation, rental income and potentially maxxing out the FAR but with the management, maintenance and developing headaches.

 Kind of a long winded question but considering our options. Thank you!