I want to sell my SFH (purchased in May,2020) for an owner occupy multi family in NE Minny. How do I calculate if i should sell ASAP vs holding for 2 yr tax exception?
I invested $20k into the DIY live-in flip and currently rent one of the bedrooms for $500 of the $2050 total monthly expenses. It has been a good introduction to house hacking, however I want to decrease my living expenses even more by purchasing a 2/4 unit multi-family and finding roommates to share my unit as well.
Why don’t you try to keep the house AND buy a multifamily to house hack? Maybe you can leverage some of the equity in the SF to put down on the next property. This assumes the house would cashflow as a rental...
@Matthew Day That is a very good point. A few rental property management companies walk the property and based off their estimated numbers it is likely it won't generate positive cash flow. Thank You!
@Tim Swierczek Thank you very much!
Talk with your CPA and determine what the tax hit would be if you sold the property now.
Is the tax hit a lot? consider waiting till you can take advantage of 121 exclusion.
Consider both federal and state taxes in the calculation.