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Updated over 7 years ago,

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1
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Ginger H.
  • Investor
  • Sanford, FL
0
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1
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Need help with the MATH! Hold or sell?

Ginger H.
  • Investor
  • Sanford, FL
Posted

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.  

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