Residence turned investment

[Todd Pickett]

Investment Info:

Single-family residence buy & hold investment in Fort Worth.

Purchase price: $195,000
Cash invested: $10,000
Sale price: $370,000

It was our residence for 5 years. Held as investment property since we moved. On the market Weds 8/11/21, multiple offers in hand by 8/15/21, and expect to be under contract to sell on 8/17. This property has been slightly better than break-even in terms of cash flow, but the equity growth paid for a large metal shop at our new residence via a cash-out refi, and we'll turn the proceeds of the sale into 4 or so new properties with plans to grow our portfolio from there.

[Dave Foster]

@Todd Pickett, Great thought by @Dave Spooner.  In your research you probably picked up on this but depending on the size of gain, if you convert a property from your primary to investment, sell it within three years and the gain is more than $500K (if married) you can actually combine and do both a 121 exemption sale to get the maximum gain tax free.  And you can also do a 1031 exchange to defer the rest of the gain and the depreciation recapture.  Doubling up like that is a pretty powerful way to leverage your wealth.