Could you refi and buy more?
If you sold it, how much cash would you walk away with
if you do not need the cash to live on then i would do a 1031 exchange to avoid paying any capitol gains taxes.
Whatever it is, it's a nice problem to have. Good luck.
Originally posted by @Benjamin Palasek :
I owe 60K. Comps in the last few months are about 150. Is capital gains tax still 15% if your a small fish?
Don't sell it. Refinance it...like it was mentioned above.
* 90,000 Profit (if you sell full assumed ARV)
* -14,000 15% CG Tax
* - 9,000 6% RE Commission
* - 4,000 Closing Cost
$63,000 Walk away.....and no cash flow
* 112,000 Refi 75% of $150k ARV
* - 60,000 Existing Loan payoff
* $ 52,000 Walk away....and you have your cash flow still coming, and...
you have $52,000 for another property.
I would agree it makes more sense to refi and buy another property. Hopefully you will also be able to get into something that will also cash flow positively. Over the long haul this will cause you less work, have to buy less number of properties and add to your cash flow totals. You are in for the long haul right? There is nothing like the tried and proven.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!