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Updated about 3 years ago on . Most recent reply
![Ted Esposito's profile image](https://bpimg.biggerpockets.com/no_overlay/uploads/social_user/user_avatar/774511/1621497118-avatar-tede2.jpg?twic=v1/output=image/crop=500x500@0x0/cover=128x128&v=2)
Tenants moved out. What should I do with the property?
This was my first home (3/2 SFH) which I purchased in 2016, lived in as my primary through 2019, and then turned into my first rental property (I bought another house to move into). Mortgage is $1300 and income was $1800. Currently sitting empty. The local market (Florida) is going through a big housing bull market (and higher than average inflation at 8.5%). A lot of people are moving from California, the midwest, and northeast. There are a ton of investor rehabs, flips, and rentals (25% of buyers here are investors, many out of state).
I purchased the house for $189k at 3.875%, still owe $154k and could sell as-is for $325k. If I sell before 2023, I could avoid capital gains tax because I lived in for 2 of the last 5 years. The condition is okay, the bathrooms and kitchen are outdated from the 60's and the roof is approaching the end of its life. So here are my options:
OPTIONS TO SELL
- Sell as-is, as soon as possible ($300k-$325k)
- Remodel the kitchen and bathrooms (~$20k?) and then sell ($325k-$375k)
- HELOC and use it for #2
- With either option, I could walk with no cap gains tax, or attempt a 1031
*If I sell, I'd walk with maybe $150k to put towards another property.
OPTIONS TO RENT
- Rent as-is, as soon as possible ($2000/mo)
- Remodel the kitchen and bathrooms (~$20k?) and then rent ($2300/mo)
- Cash-out refinance and use this for #2 and have another $80k for another property
- With either option, I'd be losing the opportunity to sell with no capital gains tax if I continue renting it in 2023.