CREATIVE EXIT STRATEGIES

[Gina Lusca]

Hey Guys! Me and my husband moved to MO from DFW almost a year ago for a job relocation. To make a long story short we ended up buying a single family house last Aug with almost an acre of land on it. The job relocation did not end up panning out the way we intended so we are considering doing a seller finance with an assignment fee to get our money out of it and move back to TX. The only part that scares us is having the house on our name that will affect our DTI for our forever home. Any tips or different exits are welcomed please!!

[Dave Foster]

@Gina Lusca, It sounds like that house was your primary residence.  In that case a 1031 exchange would not be appropriate.  But I've got better news.  Since you are moving due to a job related reason you should be able to sell that property outright and take a proration of the gain tax free without having to live in it for 2 full years.  If you lived in it for one year you should get the first $250K of profit tax free (50% of the $500K married exclusion).  

If seller financing was just a way to mitigate taxes a tax free sale might be better.