Do I sell in order to buy more??? Looking for advice...
Hi all...So here's my situation. I currently own a home in Los Angeles CA (Highland Park 90042). I have gained substantial equity in the house over the past 2 1/2 years since I purchased it. I am going to be buying a home near by which was my Grandfather's which has been offered to me a bit below market value. I will rent the house that I am currently in which will provide monthly cash flow. My question is if I should sell my current house instead. I believe that I will be able to pocket around $250K profit without being hit by capital gains taxes, as the law now allows up to $250K tax free with certain requirements which I qualify for. If I were to sell, I would use that $250K for other rental property purchases in other regions of the country. Any advice? Many thanks in advance! ~Andrew