Mobile Home/First property

[Ramon Martinez]

Hello all, so I am trying to get into real estate investing but not sure how to start. I currently have a mobile home that will be paid off in a few months. I am thinking of renovating and selling. Question is should I keep and rent or should I sell? If I sell I plan on getting out of debt and reinvest whatever is left? Also if I sell will I get hit for capital gains? Any recommendations ?

[Natalie Kolodij]

Originally posted by @Ramon Martinez:

@Rachel H. I don’t live in the mobile home. It used to be rented out before but I was nice and trying to be helpful to the tenant and at the end they left and trashed the place without warning. My question is really if I sell will I get taxed for capital gains on it. I know it’s a mobile home and they don’t appreciate like a regular house but the area it’s in makes worth more. It sits on half an acre so the actual land helps. I know I can easily get what I paid for it but with the right renovations and a bit more I can double what I paid for.

Still taxed as capital gains. 

The cap gain rates are based on what bracket your income is- but the gain from the sale also factors into your overall income which determines your bracket for the year. Kind of a circular calc.