Hi first post, I own a condo in Long Beach Ca. should I sell it or rent it. The condo costs me 1100 for mortgage, HOA, taxes, and insurance. Everything is new incl hvac, appliances etc. I have 180k into it's worth 340-360k I owe 65k. I put this much into it as it was going to be my home. The building and area are ok can hear neighbor above badly though. The rental calculator says it is a negative (I estimated an increase in HOA from 340 to 375). Thinking about taking the 150k profit and trying in New Haven, Ct area as I've got a long distance relationship.
However here in Ct., the taxes are nuts and I think variable with the pandemic I think the taxes will go skyhigh.. I've owned rentals long distance in Dallas for 5 years so I know some of the pitfalls but I'm freelance so no mortgage loans are available unless I get a job for a year or so.
I think I can flip here in Ct but it would need to be something small that I can go cash. Need some advice...
Yeah, you're not going to make any money on the condo, @Davi Fu . Even if you could scratch out a little cash flow, with close to $300k in the property your Return On Equity (ROE) is going to be terrible.
I'm not expecting a jump in property taxes her in CT, UNLESS the town was already in some trouble prior to the pandemic. It's a little difficult to compare apples-to-apples without really digging into the numbers of each town. Sure New Haven may have a tax rate of 43 mills, but what is the average price-per-unit? What is the town assessment compared to FMV?
Sure thing, @Davi Fu . I'd recommend you start looking for a replacement property now so that you can execute a 1031 exchange and defer the CG taxes (I'm assuming that you don't qualify for Primary Residence CG Exemption). Feel free to reach out with any questions, I may have a few ideas for you.
If you own $65k and sell for ~$360k, you should have ~$275k after sale, no?