New Build: Move in or sell it
Hello,
I'm getting ready to finish a new build and I'm having trouble deciding if I should live in the house for 2 years in order to benefit from capital gain taxes and have a large chunk of equity or sell it and make a profit.
Numbers if selling
Cost of building house: 450k
Can sell house for 550k
Profit: roughly 100k
Numbers if living:
Mortgage: 2300
Utilities: 200
Total: 2500
As you can see it would be a large mortgage to take on from my current rent payments of $550.
My dilemma for me is the tax liability associated with both situations. In my opinion if I live in it I won't have such a large tax burden but if I sell it I will have to pay a ton of taxes right off the bat. However if I do sell it I will have a large chunk of money to continue in my RE career and can keep flipping houses and building.
What do you guys think? Sell it or live in it.