Hello Everyone,
Contemplating selling my investment property in the Rocklin/Roseville, California area. The home was my primary residence prior, and if I sell the home next summer, I wouldn't have to pay capital gains taxes on the $200K appreciation (lived in home 2 out of last 5 years). The home was a new build in 2019 with minimal maintenance and 30 year mortgage at 2.25%. Currently, use a property management company and it requires minimal time on my end. The property negative cash flows 400 dollars a month (not counting unexpected repairs), but I gain about $15K in equity each year paying down the mortgage. I live in Upstate NY and own a primary residence there. I have a high income as a healthcare professional, so the negative cash flow I can easily manage. Would you sell it or let it ride?
After reviewing the forum, seems like the logical move is to sell the property. I would make a big profit on the appreciation and avoid a large tax bill. Seems like this property would not cash flow for a while and I would be speculating on future appreciation. If I sell the house, I would like to use the money for real estate investments and would love to hear everyone's suggestions.
On the other hand, I could hold on to the property with the thought that I can handle the expenses of keeping it, while continuing to pay off considerable equity and gaining appreciation for each year I hold on to the property.
I would love to hear everyone's thoughts on what is the best option, as I have been having trouble making a decision given my limited knowledge and experience. Thank you everyone!
-Greg
