Hey, all! I wasn't really sure what to call this post, so forgive me my scatter-brained topic!
I'm looking into a few different options of ways to purchase a home once I get around to buying my first one late next year, and one of the more attractive opportunities is a state program for teachers who are teaching in-demand subjects in transitional/priority (read: poor) districts, which is what I believe I'll be doing in a year's time.
There are a lot of incentives, but the only big drawback seems to be that in "some cases" (super vague, can't dig up too much more) if you sell the home within 9 years and make capital gains, you can be charged what sounds to be a pretty hefty federal tax.
My strategy at this point seems to be going toward buying & holding MFHs, so in theory this wouldn't be too problematic... it just worries me by not having a clear exit strategy should I need one; that I'd be cornered into holding onto a home that maybe becomes a burden/nuisance for fear of getting slammed with some unexpected loss come tax season.
Has anyone else here had a similar experience? Is this something not worth looking into when weighing risks?
Remember that taxes are on gains.
Even if you do have to pay a tax (which I don't think you will), it means you made alot more than the tax bill.
If the state program requires that the property you purchase be located in the poor school district, is there a strong demand by occupants who want to live in that poor school district? I have found that many of my tenant prospects were looking to escape a poor school district, preferring to live in the neighborhood with a better school district.
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