All Forum Posts by: Karen Y.

Thank you all very much for the additional thoughts!  Very much appreciated

thanks so much for the ideas and thoughts!

One other thought is we have parents who own a rental property in the area and will be relocating to the property shortly.  Not sure if there are any strategies such as tax laws that deal w/ inheritance, family transfer of properties, etc that might apply

Thank you for all the advice and thoughts, and apologies in advance for the lengthy delay in responding.  I was trying to absorb all the BiggerPockets advice and do some research/follow-up before responding.  And then we suddenly realized there's a condo lawsuit to factor in.

In July, the HOA filed a lawsuit against the developers for $2.2M in construction defects. Estimated cost/homeowner would be $17-34K in assessments (let's say the $2.2M is inflated 2x). The initial hearing is in mid-October.

Zillow estimates ~$935K, but that's without accounting for the lawsuit.  We understand financing is difficult but still doable, but considering the market also seems to be cooling a bit (not just seasonal) it seems the impact could be significant.  

To the previous points raised (thank you again!)

1.  We don't know where the next property would be.  We had looked at Roseville/ Sacramento area, Denver, San Diego, Austin but hadn't found anything.  We know we need to focus, but are struggling w/ that initial step of figuring out where

2.  @Michael, @Steve - Thanks for the suggestions, have a meeting w/ our tax adviser and will ask.

Hi All,

I have a condo in Silicon Valley (Sunnyvale) that we converted from a primary residence 2 years ago. The 2-out-of-5 years window for tax purposes is coming up, and we are trying to figure out what to do next.

I bought it ~10 years ago for $625K and it's ~$900-925K right now.  We rent it out for $3400/month and profit $500/month.  The property is walking distance from the new Apple campus and very easy to manage.  

Whether or not we hold onto this property, we would like to invest in real estate.

It seems like our options are

1. Sell the property to avoid taxes, then look for new investment property
   
2. Hold onto the property. Hope prices continue to go up, do a 1031 exchange later. However, it seems it would have to appreciate a lot to make up for taxes. That said, prices are skyrocketing. If we did keep the property, we have also considered taking out a HELOC to invest in other property (not Bay Area).

How would you think about this?