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Updated almost 2 years ago on . Most recent reply
Selling a primary residence? vs holding as a rental
So for background, I have been house hacking in North LA county for a few years now. Since then, I've come across Biggerpockets and last year I started seriously looking for a second property. This month I got a larger property under contract that will be my new house hack, and I'm trying to plan out what I'm going to do long term with the previous house. The rental market is very strong and I have an 2.25% VA loan. One of the current tenants just signed a lease to take over the whole house after I move out. It will be cashflowing $1k/mo. The other is going to move into the new house with me and I have one other already lined up whenever I finish rehab on the property. The 4th bedroom I'll be prepping for a travel nurse as it is across the street from a trauma 2 hospital.
Because I have lived in this property for at least 2 of the last 5 years, my current plan is to sell it in 2 years and then pick up some new properties with the cash.
Without doing a 1031 down the road, is there any way I can get away with not sacrificing the $250k tax exclusion benefit without giving up that interest rate?
I am definitely trying to do everything by the book. I also have an LLC if that helps.
Thanks for the input. If any of you tax folks know the answer to this, I'm also going to be looking for help with taxes and tax planning soon. =]
Most Popular Reply
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- Real Estate Broker
- Minneapolis, MN
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@Bruce Ng your asking today, if you should sell in 2-2.5yrs. NOBODY can answer that with any accuracy. Your putting the cart a football stadium ahead of the horse.
We have so much unknown changes to come in the next 12-18mnths that who the heck knows. We could have WWIII by then, there will be a new president, will it be Biden, Trump, President Camacho, who the heck knows. One thing is certain, lot's of changes, impactors and adjustments.
Worry about the things in front of you NOW that you can control, that's where energy is best served.
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- James Hamling
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