Selling Primary Rental and Rebuy - Tax Gain exclusion Options
I have a SFH rental that was a primary residence and has been in rent for 2 year and 3 months, The rental lease coming to an end in 2 months. I have 6 months left to qualify for the Tax gains. I assume i will be able to qualify for
300K profit, with 75K in transaction cost (6% RE commission + 2% tax + 2% on Misc spruce up/staging/mortgage etc)
Cash flow is positive because of low mortgage, 15 year interest at 2.625, But rental yield is very low 4% based on current market price that is the nature of the yield in this area i can find 5 or 6% yield maximum if I find wholesale or auction property in my area.
I have 3 options
a) Sell it and take the capital gain (45K or 56K including net invest takes) and re invest the profit back into another rental property that may not be cash flow positive in the area)
b) Keep the rental and continue as long as I want and exchange it 1031 later point in time.
c) Take the profit and reinvest in stocks or pay my primary residence
56 tax gain is no brainer but considering I need to reinvest in the same area (metro) to get another rental, Is it worth doing 75K transaction cost.
suggestions and thoughts?