Updated about 3 years ago on . Most recent reply
Great ARV /Negative cash flow
My wife and I just finished the rehab and refi on our fist BRRR property and it's looking like we have over ARV is 30% over cost! The bad news is that the rental market for the property is not looking like it is as strong as we had hoped and we may need to accept negative cash flow to rent the unit. We could sell but I am being told that without renting it first we are not eligible for a 1031 exchange and would pay 40% or more in taxes on the gain. Any advice on how to proceed?
Most Popular Reply
If I were in your shoes I'd sell the place. I agree with the poster above, not sure where you live or your tax bracket but 40% sounds high. Talk to your CPA.