At the end of the five year rule; should I sell the rental now?
People look at me funny when I ask this question, so I finally signed up and am here, asking for help.
My tenant moves out in April and my tax person has said that I have until July 31 to sell to keep the profits tax free (up to 500k for married). This would be the 2 out of 5 rule for living and renting the condo. The profits would be around $200k and the net between the sale and the mortgage would pull in $300k. The rents are in the Bay Area and are very good for now, but both the rental amount and housing value could drop. Should I pull the $300k out of the rental, pay down my primary mortgage debt? Put $300k in the market? Or Have my FU money lined up for a four year mini-retirement now?
I have a high stress job, high pay job. If I don't sell, I'll keep the condo in a rental mode for ever. It nets about $500 to the upside every month.
Posted Feb 22, 2016, 6:03 AM UTC