My CPA is telling me we should sell our rental house which We used to live while we have a benefit for TAX FREE term. We lived 5 years and start renting 2 1/2 years ago. I am thinking to keep renting or sell 2015? Is Knoxville TN 2015 Market good for selling?
Given the ratio, I would sell and buy two houses where monthly rent is a bit closer to 1% of purchase price. Granted, there are a load of other factors? Do you still live in Knoxville? Are you trying to buy any new homes? It all depends on your goals.
I agree with @Trevor Ewen in asking what your goals / investment strategies are here. Do you own the house out right? If not what is your equity position and is building equity important? Can you sell it and buy two houses that cash flow better?
Thank you so much for your opinion. I will consider that.
I don't know the housing market that is local to knoxville.
However, I think the real estate market is due for another downturn soon (1-2 years?).
Better to sell on the way up (nobody can predict the peak -- even though I just did! ), then sell on the way down.
I'm planning to sell my high priced California property (520K, rent 2300/month) that is negative cash flowing by around -100/month and do a 1031 exchange to properties that make sense in Texas or elsewhere
An interesting analysis. What I would do is to see whether I would buy that property today say with a 20-25% down payment (hope Ben doesn't swing by here) and see where the numbers land. Not sure about property tax where you live , age of home (for maintenance) etc. I have a feeling you are better off selling and using those funds to buy multiple other properties with better yields.
Thank you for your opinion.
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