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Updated about 6 years ago on . Most recent reply

User Stats

24
Posts
5
Votes
Bruce Reeves
  • Investor
  • Bella Vista, AR
5
Votes |
24
Posts

I'm moving - need advice on a two year gig

Bruce Reeves
  • Investor
  • Bella Vista, AR
Posted

Live in Northwest Arkansas. Got a job offer in Conover, NC. Own my home and want to rent it out. On the back end of a 15 yr note at 2.875% with $900 principle going toward a $1,135 note. Don't want to disturb that. I may be $200 upside down including vacancy and repair included. Been a landlord for twenty years on my duplex in the next town over, so I'm very familiar with the rental side of things.

I could easily rent a house there and call it a day but I want to turn this two year job into an opportunity to do better than that. I plan to retire after this job, so there's that. I will sell my house upon returning then to use the equity to pay off the duplex for cash flow. I got to be aware of the capital gain exclusion. If I take 2017 to 2021 as the five year period and I lived in the house for 2017 & 2018, I understand I need to sell by Dec 2021. Please someone verify I got this right - this would be huge mistake to make. Home value is about $260 with payoff of 72k.

Question - what strategy can I invoke to come out ahead and possible buy/sell and effectively live rent free?  Small town and median home price about 140k. Have a little on hand cash of 10k and significant 401k money.  I'm 60, so no 10% withdrawal penalty but of course withdrawal would be ordinary income. Thought of a buying/selling a used single wide in the 50k range. Buy/sell the usual 120k bread/butter 3/2 in this short time frame is probably not worth it with the buy/sell expenses. I don't want to work on anything to fix up. 

Any suggestions would be greatly appreciated, this is coming fast so I got to get busy with it.

It's only me and the dog, so I can do whatever I want. 

Most Popular Reply

User Stats

5
Posts
1
Votes
Breanne Lancaster
  • Rental Property Investor
  • Northwest Arkansas
1
Votes |
5
Posts
Breanne Lancaster
  • Rental Property Investor
  • Northwest Arkansas
Replied

Ryan, 

My husband and I are looking for a CPA in Rogers for the upcoming tax season. Who would you recommend? 

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