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
...next 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My current rental is 1950s built...old plumbing, and outdated exterior...I feel major maintenance is bound to happen in next 5 years.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...
Can you do a 1031 exchange so you don't have to worry about tax loss? I wouldn't try to time the market - just stay on the lookout for a good deal.
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 won...dm 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!
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