This Old House

[Robert Hasty]

Current situation,

Wife's mother renting Wife's home. I'm not on deed as we met and married after her purchase. 

Mother in law has been renting Wife's recently renovated by us over 100 years old home for past few years. Only enough to cover mortgage and taxes. 

Mother in law has recently been having some health issues and we don't see her lasting much longer in the home. Nursing home likely on the horizon. 

We have a decent amount of equity in the home 3BR 1Bath and the mortgage is 30% of fair market rent in the area. 

We're discussing selling and moving to western North carolina. We'd like to buy either a SFH with detached dwelling unit we can rent out or a multifamily and house hack. Honestly whichever one we could get the best yield on We'd go for.

So my question is, sell it because it's very old and start fresh in the area we want to be, or keep it as seperate rental which would cash flow and buy what I mentioned above anyway as we really do want to establish residency in North carolina.

Thanks for the help 

New boston P.a if that helps. 

[Lien Vuong]

If you're able to sell this and defer the gains to another higher cash flowing asset I would do that. You will have to pay taxes on the proceeds that you use towards your primary if you choose to do so as this property has a history of rentals. Something to keep in mind. If you want to expunge the gains completely, you'll have to move back into the home and sell after living there for 2 years.