Kamloops, BC, Canada - Apartment Unit Sell or Keep

[Malahia C.]

Hi, 

My husband and I have been longtime lurkers on BiggerPockets! We read a ton of the Bigger pocketbooks and listened to many podcast episodes before purchasing our current home in Los Angeles - and have been very happy with that decision so far! 

Our question relates to our rental unit in Kamloops, BC, Canada: I moved to the USA from British Columbia Canada. While at school in Kamloops I purchased an apartment unit that is across from the University. We have been renting it out using property management but are now heavily considering selling the unit. We are barely cash-flow positive (after property management, HOA, and mortgage and taxes probably make about $100 CAD per month) but the unit is very rentable and we have never been vacant. The property has doubled in value since I purchased it in 2017. We anticipate that we would use the money to pay off renovation loans, build an ADU, and invest in a rental unit with a partner.

We are very hesitant to make a decision given the current market trends, exchange rate, and capital gain implications in Canada. We really appreciate any advice anyone has on whether we should sell or keep the unit (or potentially wait to sell) 

Thanks a bunch! 

[Bjorn Ahlblad]

@Malahia C. welcome to posting on BP! I don't know if you have lived in California long enough to file taxes in the US. California taxes with the 13% state tax may work out similar to Canadian taxes. Speak with a CPA to be sure. If prices have come down in Kamloops you may consider continuing to rent if they are still boyant then sell quickly and do the ADU etc. All the best!