All Forum Posts by: Christine I.

@Joe Homs Thank you for explaining this in terms that I can understand. ;-) It would be hard to find anything that appreciates almost 230% in 13 years plus gives off cash, besides real estate. 

What's the going rate for lending private money? 

@Joe Homs I'd like to pick your brain a bit more if you will allow. Purchase price was $141,500 in 2009. My husband and I purchased it as investment. He passed in 2021 which is where the stepped up basis is. If I were to sell property for let's say $460k I would only owe taxes on the difference between selling and appraisal price ($40k). That's my understanding. For my circumstances it could be the best time to sell but I'm trying to figure out if at this point I'm better off keeping it as a rental (all fixed up and great location!) or finding a better way to invest the possible proceeds. My husband did all the wheeling and dealing and I don't think I'm up to that. Not so sure about investing in real estate out of state. Is there a down side to holding on to this property?

Two bedroom, two bath condo in Ventura, CA. Paid cash for it in 2009. Great location. It was trashed by tenant not to mention old and outdated (built 1965). HOA fee will be $470/month. 1180 Square feet. I've spent approx. $60K on complete rehab and update that will be completed in 2 weeks.

Projected rent is $2,400.

It has been appraised at $420k but is worth more now after rehab plus prices have gone up since appraisal was done. $460k is realistic.

If I sold I have a stepped up basis so would only pay taxes on anything above $420k. Honestly not sure what I would do with the money-I know that's a nice problem to have. 

If I keep it I have a very high HOA that cuts into my profit.

I'm hoping for constructive comments to help me make a final decision here.