Moved from CA to FL, should I sell my duplex in CA or keep it?

Question

I recently moved my family from CA to Florida. I’m 35, married and have 3 young kids who are not in school yet.

I’ve been thinking about what is the best strategy for me. So I hope someone can offer some advice.

I have a duplex that I owe $240k on that I can probably sell for $500-$525k right now. It’s cash flowing $1300 per month (after expenses).

However, I’m currently renting in FL for $1700 per month. And it’s becoming hard to manage the duplex by myself by being so far away.

My thinking is, if I sell my duplex for $500k, I can easily buy/build a primary residence here in FL for my family for $250k cash here and not have any mortgage to pay and not have to deal with the pain of managing a duplex from a different state.

My question is, would this be a wise move on my part?

Joe Homs · Answer

@Vitaliy Merkulov OMG you have a duplex that is actually cash flowing in California? My short answer is keep it. Here is why.

1. If you sell the duplex you will pay long term capital gains of 20%.

2. Hire a good property manager or get a home warranty plan to take care of the major items in the home.

3. You are making $1300 a month and your rent is $1700 a month, so your "TRUE" rent is $400 a month. Where do I sign up?

4. Let your tenants pay your mortgage down to zero. When you are 65, like me, it will be paid off and give you lots of freedom.

Good Investing...

Moved from CA to FL, should I sell my duplex in CA or keep it?

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