When should I sell

[Ramesh Ramdatt]

I just purchased my first home this past July. It's a 2 unit house that I'm currently using as my primary residence, and renting the second unit. I had to take a FHA 3.5% down loan so my mortgage is high. I created a separate bank account for the house expenses and incoming rent. I charge myself the rent I would have to pay if I rented the same apartment elsewhere, by depositing that money into the "house" account. With the rent from my tenants and the rent I charge myself I have a positive cash flow of $200 into the "house" account. Now I notice that other identical houses are being sold for $100k more than what I bought my house for. My question is should I sell it or hold it for the cash flow, and if I do sell it what kind of taxes will I have to pay on the gains. When are my gains tax free, after 2 years or 5 years as my primary residence

[James Paine]

1. Don't sell at least until you get the tax break. 

2. If the property cashflows then I'd say don't sell it at all even if you move. 

3. The questions above from @Mark Holencik was very important because opportunity costs, efficient use of capital, etc. 

In general my recommendation for folks who don't have all their liabilities covered by passive income is that they shouldn't ever sell a cash flow generating property.