All Forum Posts by: Nabeel Qureshi

I got a similar offer... anyone go through with this? ROI seems too good to be true

@Dinh Gia Phung

I’d be very careful about “wanting to rent to a family”. That’s a clear violation of fair housing act based on “familial status”. You can’t discriminate for or against someone because they are/aren’t matter and/or do/don’t have kids

Congrats! How did you pay it off so quickly? Agree if you own it out right it will cash flow but then more equity is tied up in property?

I would recommend looking for a condo or townhome under 400K and living there for a year or two as a primary residence.  You might be able to get it cash flow after renting it out because of better interest rate than investment.   

Those rentals are harder to rent, you’re right because the rent is higher and less people in the market for those.  Plus side is you might attract a small family of reliable tenants if your place is nice.  And the appreciation will be better.  3 bed 2-3 bath homes will always be appealing to first time home buyers in future.  

Also consider 25% on a lower price property to help cash flow.   Real estate is location location location.  Recommend staying in Arlington, Alexandria, or Falls Church- Woodbridge and Manassas may be too far out.  Think of something close to schools, major hospitals, DC, govt etc.  

Thanks @Luciano A. that is helpful. Yes, had realtor comp/analyses for both selling & renting. 

Not looking at 1031, thinking for tax free gains since this was primary residence. It's Washington DC area so relatively insulated from market corrections, though if the sky truly falls and it happens to be right then, no real estate will be unaffected.

I am not motivated to rent by greed, I am motivated by interest - have never done it before, and given that this property I already own and other factors make it conducive to renting- will certainly look at new opportunities in next market as well. 

@Nathan Gesner @Theresa Harris I have already made the decision to rent it out, what I am asking is should I sell it in 2024, before I get to the 5 year ownership mark to take advantage of the tax free profit per IRS Publication 523, or should I hang on to it Long term?

@Nathan G.

I have run the numbers. It cash flows positively.

Operationally, What makes it most attractive is that because it’s a condo building- the building has their own management and maintenance staff and association rules.

The interest rate is also great

They mention my *exact* situation as an example in the publication 

Yes you absolutely can.  See IRS publication 523

Why not rent it out for a bit and gain more equity and then take the tax free gain?