I own a condo that I used to live in, but now rent out. After two tax increases and a subsequent rent increase, I only profit $18 a month on the property. I'm wondering should I just sell it or should I keep increasing the rent on the current tenant? I would ma j e a pretty nice profit if I sold. It is a one bedroom, one bath on the best street, in one of the most sought after areas in Houston.
Could you use the proceeds from this sale to make one or more purchases in more cash producing assets?
Do you expect increased appreciation in this area in short term?
When did you move out, and do you still qualify for the IRS 250K exclusion on gain? IE. if you continue to hold for a while will you lose that exclusion?
I think I could get about 25k net out of it. So, yes I might be able to reinvest in a better cash producing property. The only problem is the Houston market is so inflated right now.
The area has appreciated over 20% in the 5 years that I've owned the property and I honestly don't see it going down.
I just moved last year, so I will keep that IRS 250k exclusion in mind.
You to do a lease-option on it. Have the buyer in place, increase the rent if market allows, then sell it when buyer exercises the option.
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