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Updated over 7 years ago on . Most recent reply
Need help with the MATH! Hold or sell?
Hello- I'd like some help with the math to see if I should sell soon or hold onto a rental property. I used 1033 exchange funds to buy a few single family homes in 2015- the most expensive was the property that I am thinking of selling. We paid $164K (foreclosure) and did some renovation. I have about $220K in it and could sell it for around $320K- so around $80K profit. Then I'd have pay taxes - from my understanding- Id have to pay taxes on the gain from the 1033 exchange. I never sell - always hold and rent so I am new at this and also don't fully understand the 1033 exchange.
Right now I rent the property for $2K a month. If I sell, I could take the $$ and buy some more property to renovate or keep it and hope that it appreciates more. I have a total of 7 properties (11 rentals) and this is my least profitable. It is a very good time to sell in Florida- though I guess it could still go up! It is also very hard to find a good deal anymore. I owe about $400K total for all properties at around 3.25%. Thanks in advance for recommendations and for showing the math.