I am not really sure there is enough information here to offer you any advice. So here are some general ideas:
1) You should only sell the house, if you can make more money somewhere else or really need the money. So I am not sure why your plan is to sell if a year or two.
2) If you want money to buy more properties, then maybe you should consider obtaining a cash out refinance on the house.
3) If you are determined to sell the property, a 1031 would most likely be a good idea. But it depends on how much cap gain you would have. I have only done one 1031 and it was to shelter $65k.
We are writing 1 year leases and planning to rent for the long term. This will be our early retirement income.
We have no plans to sell, so we will get second mortgages when needed.
Right now, getting 5-7% or more in real estate is a good thing.
Thank you for getting back to me. I wanted to sell after a year because i do need money. I didn't want to short sale and take the capital gain tax hit.
Correct me if I am wrong, but after 1 year of holding onto a home isn't capital gain tax reduced to 20% if you decide to sell the house. I f I were to sell the house under a year I would be taxed at 40% capital gain tax.
If you have any other suggestions for me, I would love to read them.
Hey,
I am not really sure there is enough information here to offer you any advice. So here are some general ideas:
1) You should only sell the house, if you can make more money somewhere else or really need the money. So I am not sure why your plan is to sell if a year or two.
2) If you want money to buy more properties, then maybe you should consider obtaining a cash out refinance on the house.
3) If you are determined to sell the property, a 1031 would most likely be a good idea. But it depends on how much cap gain you would have. I have only done one 1031 and it was to shelter $65k.
I hope this helps.
We are writing 1 year leases and planning to rent for the long term. This will be our early retirement income.
We have no plans to sell, so we will get second mortgages when needed.
Right now, getting 5-7% or more in real estate is a good thing.
Thank you for getting back to me. I wanted to sell after a year because i do need money. I didn't want to short sale and take the capital gain tax hit.
Correct me if I am wrong, but after 1 year of holding onto a home isn't capital gain tax reduced to 20% if you decide to sell the house. I f I were to sell the house under a year I would be taxed at 40% capital gain tax.
If you have any other suggestions for me, I would love to read them.
Thank you for your time.
If you need the money within one year, then don't invest in rental income property.
Put it in three and six month Treasuries instead.
Thank you for all of your opinions.