Help with current situation in Florida Condo

[Mallibi Monasterio]

Hi All,

I am new in Bigger Pockets, but so far I am loving the community. 

I am a new real estate investor and would like to have the feedback/advise of seasoned investors in the following case:

I own a Condo Apartment in Florida. The apartment I bought it in 2015 with FHA for $235K, the appraisal back then was $255K. My actual mortgage payment is $1750 and additionally the maintenance fees are $1000. I rented the apartment few months ago for $1750 which is good to pay the mortgage, but still I have to put $1K out of my pocket to pay the condo maintenance fees.

I am not sure if I should just sell it or wait a little longer to have more appreciation in the property (approx 5% per year) - I think sometimes to sell but them I see how South Florida prices are going up so mmm not sure what to do

Any suggestion would be highly appreciated!

MM

[Mindy Jensen]

@Mallibi Monasterio, this doesn't qualify for a 1031 exchange if you didn't purchase it with the intent of renting it out. It looks like this was a primary residence first?

Good news, you've lived there long enough to qualify for the Section 121 exclusion, which means you'll be able to write off *almost* all the capital gains taxes.

Since you're renting it out now, be sure to depreciate the unit - the Government will assume you did anyway. When you go to sell, you must have lived in it for two of the last five years, then your capital gains appreciation is tax free for the time you lived there. You'll still pay taxes on the appreciation attributed to the time you rented it out - which gets really complicated and you should DEFINITELY talk to a CPA who can help you figure this all out.