Should I buy rentals now? Or wait for market to cool down?

4 Replies

I want to ask your opinion on which strategy to take to increase profitability

I’m thinking if I should sell my CA rental now before I have to pay capital gain tax

Cuz I’ve only rented out 2.5 yrs

Still within that 5 yrs time, that was my prior residence thing is...

A) hold on to the $300k cash and wait out a yr, but when market cool down a bit

B) buy now in Austin and Orlando

C) invest in vanguard funds

If I sell, I’m hoping to buy 2 newer properties in the 1990s-2000 built

My current rental is 1950s built...old plumbing, and outdated exterior...I feel major maintenance is bound to happen in next 5 years. If I wait, I’ll have to forfeit on tax advantage...

Dangerous part for you buying in Austin is the deadline, you have 45 days to make your list of targeted properties and 180 days to close and you can only buy what's on the list... In a market like Austin where homes are listed and sold within 48 hours that's nearly impossible. Work with someone who moves a lot of off market inventory.

Hi kelanie, If your working on selling and don't want to be in a rush why don't you do a creative seller financing to lock up the purchase price meanwhile you look for a home, I did it with a client that was in atlanta, GA and sold his home in lakewood,CA doing it that way it gave him time, locked up a good sold price, sold it to someone happy when he identified his property buyer got a full loan on a refi..everyone me and I can give you a full breakdown of how we did that one

@Kalanie Tran imo you should definitely sell while you can take advantage of the 121 exclusion especially in this seller’s market. Knowing what to do next is not an answer that can be given on a forum, need way more info. In short, go with the option/s that line up best with your goals. Good luck!

Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

We hate spam just as much as you