What would you do? Sell or rent primary residence?

Question

Craig Bellot · Answer

Since you are the man of the house, you should do what your wife wants to do. :)

Jay Hinrichs · Answer

seriously look at your 500k tax free sale..

Steve Vaughan · Answer

Depends on the tax benefits to me.  Capital gain tax exclusion.

What did you pay for the house? What will it sell for?  Were you there for at least 24 months?

You can still rent it out, but no longer than 35 months to get the tax break.

Maybe get a heloc, then do a 2 yr lease with option to buy at a make me move price with a good tenant buyer.  No commissions when you sell and you still get the tax break.

The recurring reason for me is the tax break.  If you have no gain to protect, then I'd get a Heloc and rent it out. Sounds like a good house to keep.

Tyler Rowland · Answer

My wife and I were put into a similar situation down south of you.  We decided to sell, and take the equity and do a house hack with a duplex.  The deal has been good so far and we are happy about it.  But the duplex was definitely  a downgrade from the house with the good equity.  If I could have bought an investment property such as a flip or a good 1% to 2% deal with a HELOC I would have done that. Because then we would not have had to down grade our living situation.  But the circumstance did not permit.  We are learning a lot with our duplex, stuff we were willing to learn first hand.  I hope this helps in some way.  You question sure helped me think of things that can be done with the equity. Thanks!

Tyler Kaye · Answer

Probably depends on your strategy and how well any of those scenarios fit into it.  With that much equity, it doesn't seem like you can go wrong either way.  I like to compare the cashflow I would get from holding the property for a period of time vs what I would get by selling the property.  I had a 30-year mortgage on a live in flip my wife and I were working on.  We planned to start renting the property at day 366 of ownership.  However, the market had changed enough in the area that we were able to sell and make more than what we would have cash flowed over the remianing 29 years of ownership.  Of course not everyone plans to fulfill every year of their mortgage but that is how I have decided before.

What would you do? Sell or rent primary residence?

Most Popular Reply