Another sell or keep renting scenario

[Wayne Bodley]

Hi BPers, here is my situation hopefully you can give me some guidance. I own a 3/1 sfr that I bought in 2015 for 112k (owe 100k) and lived in for two years then rented out for the last year. The tenant is moving out so I thought it might be a good time to test the waters for selling. I listed it fsbo at 194,900 and got 2 offers for 190k with me paying closing costs around 4k ( and also buyers agent for 3% about $5700) so each deal would get about 80k profit. The house is in a nice B neighborhood and clears about $680 a month as a rental and is in pretty good shape for a 1948, I just redid the roof and we made some improvements when we bought it. I will still own the two houses adjacent and now I live out of state (about 8 hours drive)

Hopefully that's enough info to get some BP counseling, I'm at a crossroads.

[Dave Foster]

@Wayne Bodley, If I'm reading this right I don't think you'll have any tax on the profits.  If you lived in it for two years and have now rented it for one year then you would qualify for the sec 121 primary residence exemption.  You get to take the first $250K ($500K if married) of profit tax free.  That settled it for me.  Time to sell.  The return on equity is decent but any property that old has cap ex looming somewhere.  And tax free is tax free.  And you always take money off the table when it's free.