Just sold - buy or wait?

Question

Hi.
I just sold a 2br condo on 89115 and am looking for something else, maybe in a better ares, to do a 1031. But I can't seem to find any properties that is worth the price.
I see 2-3 br in better areas but they are 200K - 250K for 1000 sqft - 1200 sqft. For that to work, I need $1.4 - $1.5 per sqft in rent.
e.g. https://www.redfin.com/NV/Las-... would need rent for 1700 or https://www.redfin.com/NV/Las-... for 1900 - not sure that is possible.

So I am thinking I will take my profit and pay off another condo. I will have to pay some taxes, but we are talking around 10K in taxes.

Anyone finding any properties worth buying for rental? I am aiming for 12% - 15% cash on cash. That is what I have on the condo I am selling.

Bill B. · Answer

If you have less than $65k in gains ($10k in taxes you were talking about) and evidently no depreciation recapture (either you’ve only owned it for a year or it’s in the $10k and you have even less than $65k in gains) if you’ve already sold I’d probably just pocket the money. it’s not enough reason to rush in to a 1031 purchase. You’re in a no state income tax situation (assuming you live here, otherwise you’ll have to add that tax too, unless it too is in the $10k and you have a really small gain.)

You’re just getting too close to the price of a full size home. That being said you are doing a great job of collecting big rents on small places. Keep it up.