Stuck! Trying to Sell in CA, but CANT because of Tenants!
Hi BP! This is my first post!
I live in Los Angeles and have a rental property 3bd 2 ba SFH that I am trying to sell. The reason I'm selling is the tax benefits.
Purchased for $405K in march 2015, now Z estimate is $690K. I lived in it for 2 of the last 5 years.
Tenants are on a month to month lease, and I notified them on March 3rd and provided the 60-day notice to vacate.
I discounted the April rent by $750 to assist with moving expenses.
Then Corona Virus Hit...
My tenant couldn't find a new place in the 60 days, so I gave him another 30 days, making their last day May 31st.
I spoke to my tenant last week and he hasn't found a new place. I even sent him an option that was cheaper right around the corner from their current location that i found on Zillow. He wasn't aware but said he would check out the place. This tells me that my tenant is not proactively looking, or not looking very hard, because the house i sent him had been on Zillow for weeks.
June 1st is approaching and I don't know what I can, or need, or should do given the coronavirus situation in Los Angeles.
Obviously i want to sell to take advantage of the cap gains tax exclusion.
my rate is 3.25%, i charge 2600 for rent, mortgage is 2600.
Zillow rent estimate is $3000
What can i do in this situation?? SHould i sell and take advantage of cap gains tax? Move back in and cash our refi and then rent out to have cash flow? I am leaning towards selling now, and then watching the market to hopefully score some deals in the future...
Thanks so much for any insights anyone can offer!
-Jon S.