Investor · Greenville, SC · Member since 2016 · 13 posts · 6 votes
Hello BP members,
I purchased an older property 2 years ago in Charlotte, NC for 145K as my primary residence with the intention of converting it into a rental property. I already put some money and sweat equity into the house, but it is going to need a new roof and electrical within the next 1-2 years. The house has appreciated with a FMV of approx. 175K. Should I sell now or make the repairs necessary to convert it to a rental property? If I do decide to convert it into a rental property, is it better from a tax perspective to make the repairs before or after I convert?
Investor · Woodland Hills · Member since 2016 · 82 posts · 33 votes
9y
Ok, let me tell you what I would do if I were in your shoes.
Stay put for one more year
Rent it out
Make the improvements
claim deductions while taxes as expense on income generating property
After 2 years if FMV is more than they are now and is to your liking, sell it. The profits are tax free on the sale of primary residence - that is if you have lived in the property for 3 years in the last 5 years.
Investor · Greenville, SC · Member since 2016 · 13 posts · 6 votes
9y
Michael Bowman I noticed in the forums you were looking for a roof contractor recommendation a few months back. Any luck? I'm in the need of one in the Charlotte area. Thanks!