All Forum Posts by: Account Closed

Thanks for all the responses!  It gives me a lot to consider.

About a year ago I moved out of my primary residence and began renting it, which means I have 2 more years to sell and avoid capital gains taxes.  The house is in Old East Dallas, about 100 years old, in a non-protected neighborhood zoned for multifamily where most houses have already been torn down to build townhomes and luxury duplexes.  That being said, I won't get a return on any upgrades I put into it, and soon it will be due for a lot of maintenance (roof, foundation, AC, windows).  I have a great tenant in there now, but with the prospect of a recession around the corner I'm wondering if it would make more sense to sell now.  For capital gains calcs I stand to make around $350k in profit from the purchase price (and I haven't made substantial upgrades to increase the cost basis).

I used Cozy (which was later bought out by Apartments.com) to advertise and screen applicants for my first rental.  I then used Apartments.com to lease out my second rental.  They advertise and provide background checks and credit checks, paid for by the applicant.  The website can also generate lease documents.  It worked well for me.

The 10% cap only applies if you have a homestead exemption, so it shouldn't apply to any rental properties unless it's a duplex and one side is your primary residence.

I have a similar question.  I've lived in my house 9 years, but I've been considering redeveloping the lot.  If I tear down, build multifamily, and sell all units, would the 2 year rule still apply (assuming I get it all done in 3 years and still can claim 2 of the previous 5 years).