Skip to main content

Sell house before 2 years of ownership?

I’m a first time home buyer who inherited 50% of a house in CA and bought out the other half through refinancing. I put a good amount of money into fixing the house up (around $150,000) because it was pretty beat up after 40 years, I also turned the garage into a junior ADU. I’m getting low on cash and am unsure what to do next. Construction was a lot more than expected and took a lot longer as well. I decided I’d rather move to another state and buy a cheaper home cash and forgo a mortgage. I’d like to put the house on the market as soon as possible but I won’t hit the two year capital gains requirement until March 2025. It’ll cost me about $30,000 till March in mortgage and property taxes. I have about $600,000 equity in the home and with the $150,000 in improvements puts me at around $750,000 equity, my mortgage has about $428K left on it. I’m curious what the taxes would be if I sold before the two year mark and if it’s worth to sell it now or wait until March of 2025? The home is appraised at $1,061,000 but hasn’t been reassessed with the new improvements yet. I think I can sell for at least 1.2-1.3 million with the ADU making it a multi family dwelling now. Tried reaching out to TAX attorneys but to no avail, was hoping someone with extensive knowledge could give me their opinion on what to do next? Thank You

submitted by /u/Possible_Argument812
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1dy2714/sell_house_before_2_years_of_ownership/
Labels:

Comments

Post a Comment

Popular posts from this blog

Aren't comps/CMAs useless with buyer credits at close happening now?

I'm looking into buying a new construction townhouse in my HCOL US city. I'm seeing builders offering interest rate buydowns worth $20k-$60k on $800k homes (rather than just lowering prices) in order to keep their comps high for their other units, now that buyer demand has been declining. I asked my agent about these, and he said these buydowns aren't even the full story: buyers can write all kinds of other credits into an offer, like their closing costs, prepaid sewer fees, etc. Apparently cash buyers can just write in a "buyer credit at close" for any amount in their offer. So a new townhouse that appeared to sell for $800k in the MLS might have actually been a cash offer with a $100k+ buyer credit at close, meaning the buyer only spent $700k or less in total, but to the rest of the world they can only see the $800k! So that made me realize I can't trust comps/CMAs for other new construction townhouses. The sales prices could be way lower than they appear...
1 comment
Read more

Obtaining a real estate license as a hobby?

Hello, I am 24 years old - 2 years out of college and I have my main job. I was looking to get a real estate license (in California if location matters) as a hobby/for fun since I like real estate ever since I was in high school. In the past 2 years, I would go to open house in the weekends to look at homes for fun. I don’t plan to practice real estate full time as I have my main job but I am curious are there any benefits to this? In the future, I plan to own multiple properties and have rentals, so I was wondering if getting a real estate license can help me with it? Thanks submitted by /u/AlohVera [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1f0qx9i/obtaining_a_real_estate_license_as_a_hobby/
Post a Comment
Read more

Advice? Moved out of my primary residence and now renting

I moved out of the house I own in August 2021, I lived there for 8 years, I have been renting an apartment the past 3 years and renting out my house. My current tenant is moving out in September. I seem to have just missed the living 2 years out of 5 years rule for being exempt from capital gains tax and my house being a primary home. Any advice on what the best thing to do would be moving forward? Continue to rent out my house? I'm happy with my rental, but wouldn't mind buying another property down the road. I could sell my house down the road and try to do a 1031 exchange? Moving back in my house isn't ideal because it's an hour away from where I currently live. I could take a HELOC perhaps and try to buy another property and continue renting for the long term? I do have a 2.4% mortgage rate on the house so I don't mind keeping it for a while. Thanks for everyone's advice. submitted by /u/Ok-Top-7859 [link] [comments] source https://www.reddit.co...
Post a Comment
Read more