All Forum Posts by: Leslie Daffer

Home under contract 8/25/22 in Arizona. Buyer wired earnest money on 8/26 & had inspection done on 8/31. On 9/2, Buyer requested 3 repairs. On 9/7, Seller signed document agreeing to complete requested repairs, and attached a work order from the original builder with a scheduled date of repair (home is still new). Buyer canceled contract on 9/9.

Does Buyer get their earnest money back?

About to sell primary for another primary for no other reason than to move up. Bought 1/30/21 for $422k. Projected sale price of $600k. After $24k commission & $12k in improvement expenses, we're looking at $142k in profit. Married filing jointly, W-2 job that'd put us into the 15% federal capital gains territory. Located in AZ. Looking at approx $40k in capital gains between federal & state. OUCH.

Here's where I'm curious - I've seen the tax requirements say that the $500k exemption is "only allowable once every 2 years." Our previous home sale was 6/25/20. If we were to sell our current primary after 6/25/22, would this fall under the look-back exemption?

@Chris I. We were just trying to explore all options. We looked into a HELOC as well.

@Doug McVinua Hi Doug, I really appreciate your reply! Yes, I'm familiar with Kiyosaki. We live pretty frugally otherwise and have no debt other than our mortgage. We initially chose this QC property with the thought of potentially keeping it as a rental down the road. In current market conditions, it'd rent for around $2400/mo. However, I recently spoke with a CPA and learned more about the depreciation when you have a W2 job making $100k+ up to $150k/yr. Once the numbers are on paper, it wouldn't make sense for us at all to make this particular home a rental given my husband's salary & how it has been our primary residence we put 20% down on. I was quoted 4.75% interest on a cash-out refi on an investment property. Our current interest rate is 2.875% and it really doesn't seem wise to give that up. I do have a dream of being some kind of real estate mogul though, ha...

This entire idea of selling this QC home has stemmed from the fact that my husband is now 100% remote in IT and the house has no dedicated office space. It's been a struggle keeping our 2 & 4 year olds out of his workspace. Not only that - without getting too political - given the direction(s) CA is heading, I think we may need to consider other AZ options if this ends up being more long-term than originally planned. I definitely see your points and understand that our situation could change to the point where we could possibly own rental properties. If I knew better when I was younger, I'd probably have a couple already...hindsight is somethin' else.

Own a 4-acre parcel in eastern San Diego, CA that we plan to build our "forever home" on, hopefully within the next 5 years.

Bought a 2050sf, 3/2.5, 2-car garage new construction home on a 6500sf corner lot in Queen Creek, AZ on 1/30/21 for $422k. Walking distance to top-rated school, convenient to most things you'd need, great neighborhood. Potential list price of $570k, but would have long-term capital gains. Would be able to deduct $11k in improvements + 4% commission.

Looking at possibly buying a 3200sf, 4/3.5, 4-car garage new construction home on 1 acre on a cul-de-sac in a gated community for $795k about 8 miles south in San Tan Valley, AZ. Nearest top-rated charter school is 4 miles away. Neighborhood is not finished being built out and other comparable neighborhoods by the same subdivision name go for $1M-$2.5M. More than likely a potential for more profit, but must put in landscaping and fencing, maybe $40k.

If the goal is to make as much money as possible in order to have a big down payment on the future CA build, should we stay where we're at given the capital gains hit, or take the gamble of hoping the other house gets us a bigger profit margin? We do have 2 small kids so the vicinity to the school is important.

Please give me your best advice, we need to make a decision by Wednesday! I appreciate it so much!