Selling Investment Properties to buy Primary Residence

[Scott Anderson]

Hello All,

I am in the process of making a large move, and was hoping for some advice from the community.  I currently live in PA, and have 2 investment properties in other states..  One property I rent out as a vacation rental and am still making mortgage payments, and the otherproperty was a fix and flip that I own outright.

In a few months, I will be packing up and moving out west, and in an effort to boost my down payment and get a larger house for my growing family, I was planning on selling all three homes at once.

Logistics and timing notwithstanding, I was wondering what your thoughts were on the most tax effective way to do this.  It seems I cannot do a 1031 exchange on the rental property, so any gains (it looks like about 20% each  at the moment) made will be taxed as capital gains.  My primary residence has probably decreased by close to 10 % since purchase.  Is it possible to roll that together and reduce my total taxable

Am I making a mistake by selling?

Thank you in advance for your advice.