Updated about 10 years ago on . Most recent reply
New Investor
Bought a duplex as my first investment property this past October. This property also serves as my primary residence as I rent out the other side to pay 90 percent of my mortgage. I am looking purchase three or more multi-family properties in the next ten years by upsizing the number of units with each acquisition.
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- Qualified Intermediary for 1031 Exchanges
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@Chris Rinker, Congratulations. One of the things you've also done with the property is create an opportunity in the future should you ever need or want to sell the unit you are living in and renting to create a tax free/tax deferred situation for yourself.
As long as you have lived in half of that duplex for 2 out of the previous 5 years you can sell the duplex and take the first 250K (500K if married) in gain tax free. and you can do this once every two years. The side that you rent can be treated in the sale as a 1031 exchange and the proceeds used to buy another investment property. So when and if the time comes you'll have the ultimate flexibility this way.
- Dave Foster
