Updated over 5 years ago on . Most recent reply
Hold or sell second home after a year
Hello all,
I purchased a small 1 bedroom vacation house on a lake in a rural area the week before the country shut down for Covid-19. This property has since skyrocketed in value due to folks leaving the cities etc...I am debating selling the property to use the profits to purchase a multi family else where and kick off my real estate investment goal.
The other option is to rent the house for $1200/month. My mortgage, taxes, insurance are 800/month so I would have a little cash flow coming in. I'm unsure about renting if I could make the money up front with a sale. I've read up on 1031 but with this intense market I do not have a property in mind to purchase as they sell within days here. I would probably end up having to pay capitol gains I would imagine.
Any professional insight would be greatly appreciated.