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Updated over 6 years ago,
Capitol Gains ~ Sell or Rent
I'm looking for a a calculator, app, or spreadsheet that can be used to compare whether or not it's worth holding a property for a year to reduced Cap. gains tax or to sell. In brainstorming, I thought it would need at least this info
Purchase price |
Origination fees |
Interest cost |
Closing cost |
Insurance |
Holding cost |
Rent price |
Cap. Gains tax |
Refinance cost |
Realized cap gains savings |
Here is the situation. We bought a house for cash in Jan 18, 150K , we rehabbed and added sq. footage. We have 66K into. We couldn't start on it till april, it took about 2 mo. to complete. We have it on the mkt. @ 289K . We expect to make about 70K, Our mkt is VERY HOT. Because we have had no offers, it's probably priced between 10-15K too high. it occurred to me, that we only need to hold this property 6 mo more to reduced or potential Cap gains tax. We can rent it for the duration and In addition, the property values will likely continue to rise, and if we are overpriced, there is better chance of keeping our expected profits. Since we don't have a mortgage or holding costs, except utilities.
First question is what might we be overlooking?
Secondly, is there a worksheet to be able to plug in numbers to compare 'holding vs. selling' and potential savings or not?
Thank you , we're new to the forums, but not new to flipping. However, in the past we have been "hobby flippers" one a year, this year our goal is to do 12 houses,, we are on target for 8 right now as we continue to scale up on our contractors and qualified help.
I hope this was enough info to make sense.