All Forum Posts by: David Beadles

@Chris Seveney @David M. Thanks for chiming in. I didn't mention all the specifics in my original post, but we will still qualify for the 121 exclusion because we've already lived in this home for almost 3 years. We rented the previous home for two years after we moved out. I'm off cycle in that I've already met the 2 years of residency requirement, but need to wait another year before using the exclusion again. 

Overall, I would hope that being a landlord for this home would be relatively straightforward, similar to my experience with the previous home. The current home is in a really good school district and should be relatively easy to rent to a family. The ideal tenant would have 1-2 professional incomes with school-aged kids. I also do not expect major capex type issues to arise within the next year since we just remodeled. My main concern with a one-year lease is putting the tenants through the hassle of moving their family again when the lease is up because I anticipate the future buyer would want to occupy the home.

Hi everyone,

Our purchase offer was accepted for a new primary residence and we need to decide what to do with our current 4BR/3BA home. We did some remodeling and are sitting on at least $200k of gain if we sold today. However, we sold our previous primary residence in 2021 and need to wait until 2023 to qualify for the homeowner's exclusion again for tax purposes. My wife and I both work busy corporate jobs and are raising a young family, so our time/energy are limited. 

With that context, what would be our best option for our current home?

1. Sell today and take the tax hit because a 5% downturn in the market in the next year will be about the same as the tax hit.

2. Rent the home on a 1-year lease, not renew the tenant, and sell the vacated home next year (market rent is almost the same as our current PITI, so should be close to break even).

3. Find furniture to rent and a property manager to do a short-term rental (Airbnb/VRBO) for the next 10-12 months.

4. Find furniture to rent similar to #3 above, but use it as a corporate rental and/or market to traveling nurses.

5. ???... insert other suggestion here.

The home is in the San Gabriel Valley area of southern California and is not within walking distance of many amenities, but there is plenty within a 10-20 minute drive. 

Thank you!

@Eamonn McElroy Thank you for pointing out that case. I took a quick skim and this is a very interesting read!

In my preliminary research, I could only find information related to vacant land. It does seem that this a blind spot that is not covered by the code or regs. I will read in further detail to compare facts and circumstances.

Currently, my mother-in-law lives with me and I claim her on my tax return. I am considering purchasing a duplex where my wife and I live in one side and my mother-in-law lives in the other. 

If I decide to sell in 2 years, does the entire property qualify for the Sec. 121 exclusion since I'm not renting it and my dependent occupies the other side?

Hi everyone, 

I know this is a regular question on the BP forums, but does anyone have any recommendations for a real estate agent and property manager in the Las Vegas area?

I'm a new investor from southern California and would like to find a knowledgeable agent who is willing to work with an investor who is not local.

Thank you!

David

@Terry Lao Thank you for sharing this info. Are you investing in downtown and/or North Las Vegas? What other areas are you looking at for your next deal?