Selling off or holding on?

[lbhsbz]

Where the fuck is that? 12.00 sq ft, I'll move my concrete business.

Some guy that was doing brick work up the street in long beach. I told him to get fucked. I'll haul 10 yards in a u-cart one yard at a time from the place 3 miles away and do it myself for $1500. Or maybe I'll go get some free roadbase from the dump in Gardena and do it for free.

 

[Christopher Lucero]

On one hand, I have always personally felt that anything I even entertained the idea of selling was already sold, just had not been transacted.

the more I think about it, the less I could possibly give you a full comprehensive answer.

FWIW, LOF has said to keep it, and I feel like that is pretty authoritative and informed (but what do I know) so prima facie, keep it seems like the best advice.

in my musing I thought about alternative investments and the coupon value of a comparable bond that would pay you around 1600/mo (1800 less ~10% upkeep) but it started to get complicated by the local market and the doomsaying about the Colo river drying up...

so instead, here is an image of "Disaster Girl'...she is now 21 and just sold an NFT of this image for $430k.

you can never tell if the house will burn or if just the picture of it burning will be a better investment

 

[ChrisKoller64]

Rental property may have been a bit of a stretch seeing as we mostly have friends stay there since we're a family of 5 and have a 3 br house. Call it a "potential" rental property...

 

[Christopher Lucero]

it doesn't sound like you need to sell...so...consider yourself blessed to have a place in excess or your needs, a place to exit to or share with others - whenever-you-want- there are not alot of people in this world to have that fortunate condition of living.

 

[Ultra912]

I have been told you must live full time for minimum 2 years to avoid CG.

 

[X Hoser]

So when I initially purchased the home, it was a primary residence and for the most part has been all the way up to 2 months ago when my wife and I purchased a home in Mesa. I refi-ed that one at the same time we were closing on the new one and it was classified as a secondary home. We haven't had the property classified as a rental ever since purchase as we rarely rented it and I never claimed any expenses/income on my taxes. I'm not familiar with tax codes or anything relatively similar but I was under the impression after owning a primary residence for 2 years capital gains no longer applied.

I believe this is correct. Must be primary residence 2 of the past 5 years. $500,000. capital gains exempt. Husband and wife owner occupants $1M exempt I believe. Cost basis is what you paid plus all capital improvements subtracted from the selling price. Keep them receipts!

 

[boatpi]

Keep it or buy another

 

[Havasu blue label]

It’s fine we have 4 doors in havasu sold one last year it’s great we bought in 95 2002 snow bird rentals family and friends don’t pay the going rate .upgrade your primary and sell the rental all proceeds goes to a kick ass house az then little money in bank and you are set keep your money working you thank me in 5 years and havasu take a fall .

 

[Havasu blue label]

Do not pay any fees more the 3 percent house sell them Selves and watch out realtors that buy the listing

 

[HB2Havasu]

That's my long term financial plan but the thought of making 100k+ off one RE transaction in just 4 years had me very enticed.

Trying to time the real estate market is maybe one of the hardest things to do. If your pulling a positive cash flow I would hold not fold.

I'll be the devil's advocate, I'm going to be selling my rental to pay off my primary residence in the next year. Granted the rental is in CA, so the rules make being a landlord a lot less attractive.

Collecting interest is cool, paying it is gay. I'll be happy to dump both the mortgages/tenants and stack cash pretty quickly thereafter.

Good luck stacking cash when inflation is hitting 15%-20% annually. U.S, currency will soon be worth less than the paper it’s printed on.

I paid 199k for home in Havasu when the market crashed in 09. Seller paid 340k on 04. Comping right now at 475k. Same Snowbird for 4 years from Nov to end of April. We're hanging on to retire there and sell our Cali home we own outright. Eliminates CG taxes

Im not that savvy at CG Taxes. How are you avoiding them when you sell your home? I thought the proceeds needed to be reinvested within 2 years to avoid paying the tax?

 

[Havasu blue label]

Yes sir take the cash And open a investment account and a good tax guy working capital

 

[hallett21]

OP Now’s a good time to get on the phone with your tax man.


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[c_land]

Trying to time the real estate market is maybe one of the hardest things to do. If your pulling a positive cash flow I would hold not fold.

Good luck stacking cash when inflation is hitting 15%-20% annually. U.S, currency will soon be worth less than the paper it’s printed on.

Im not that savvy at CG Taxes. How are you avoiding them when you sell your home? I thought the proceeds needed to be reinvested within 2 years to avoid paying the tax?

Hey I only said there will be stacks. No mention of the value of my future Biden bucks

 

[NicPaus]

Where was the home at? Maybe I'm being short sighted, but I just cant imagine the value going up much more than it has. I'm sure you probably had a similar voice in your head when you sold though.

So Cal. I bought a house 2 blocks over from it and built 2 new ones. Those set the record in the neighborhood in 05. One sold for 770k and 1 for 750K. I was partners on those 2 as I did not have the funds to build them. We projected 580k and by the time they sold got a lot more as it was similar to what we are seeing now. Worked out great but bought another that I lost my ass on when it crashed. Never thought they would go back to those numbers and 1 has been listed a few times since but never got the number. That one just sold 3 weeks ago for 825k. It's back to the point of thinking no way it can go higher.

Ideally you would of sold after living in it for 2 years to avoid the capital gains but now a 1031 is way to go unless your tax guy can figure out how to claim it as primary residence since it was for 2 years.

Tricky game trying to judge the market. I can build 3 where I am but can't afford to fund the build or hold them if market dips after they are finished. Should of just kept everyone and used equity to do another.

 

[Happy Smitty]

The most logical thing to do here is sell, take the cash and spend it all on hookers and blow in a Las Vegas penthouse. I'm surprised nobody has suggested this already.

 

[NicPaus]

Where the fuck is that? 12.00 sq ft, I'll move my concrete business.

That's what I have been seeing here in the Southbay lately from the local guys. Some 909s will show up and bid 8-10 but usually cut corners. Pavers I have seen up to 18$ a sq ft. Artificial turf $12.
I have 1 house I am doing turf for that price and a retaining wall for $300 linear foot. I did his kitchen and bathrooms few years ago. Mainly focusing on kitchens and bathrooms these days Unless repeat customers.

 

[GOTTBoat]

I believe this is correct. Must be primary residence 2 of the past 5 years. $500,000. capital gains exempt. Husband and wife owner occupants $1M exempt I believe. Cost basis is what you paid plus all capital improvements subtracted from the selling price. Keep them receipts!

When did it change from 250k/500k?

 

[NicPaus]

Some guy that was doing brick work up the street in long beach. I told him to get fucked. I'll haul 10 yards in a u-cart one yard at a time from the place 3 miles away and do it myself for $1500. Or maybe I'll go get some free roadbase from the dump in Gardena and do it for free.

CWS is charging for base now. And they raised the price again on dump fees. Just dumped there earlier and grabbeda load of base for turf job. $60 a ton for clean dirt to dump. $20 for base.

 

[NicPaus]

When did it change from 250k/500k?

It did not change still 250k single 500k married. Primary residence for 2 years. I have used that on every house I lived in and rehabbed.

 

[lbhsbz]

That's what I have been seeing here in the Southbay lately from the local guys. Some 909s will show up and bid 8-10 but usually cut corners. Pavers I have seen up to 18$ a sq ft. Artificial turf $12.
I have 1 house I am doing turf for that price and a retaining wall for $300 linear foot. I did his kitchen and bathrooms few years ago. Mainly focusing on kitchens and bathrooms these days Unless repeat customers.

That's insane

 

[hallett21]

Some guy that was doing brick work up the street in long beach. I told him to get fucked. I'll haul 10 yards in a u-cart one yard at a time from the place 3 miles away and do it myself for $1500. Or maybe I'll go get some free roadbase from the dump in Gardena and do it for free.

Ok the u cart image made me laugh lol


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[X Hoser]

When did it change from 250k/500k?

Maybe it didn’t? Maybe $500K max? Didn’t look it up and memory ain't worth a crap anymore. Best to verify with accountant.

 

[Bobby V]

Maybe it didn’t? Maybe $500K max? Didn’t look it up and memory ain't worth a crap anymore. Best to verify with accountant.

See post #69.

 

[X Hoser]

See post #69.

Yea, should have looked it up first. Just did, $250K single, $500K married and lived in as primary residence 2 of the last 5 years.

 

[HNL2LHC]

Curious as to what others are doing in this current housing situation. I have a rental property that we primarily rent to friends for the weekends in summer time (don't do Airbnb) and a snow bird from Canada in the winter months. The mortgage is cheap and we bought it 4 years ago for under 185k...thinking we could get somewhere north of 325k now. I'm leaning towards cashing out but curious to hear view points of people who are more experienced with investment properties and the benefits/disadvantages of selling vs renting it out longer. Mortgage runs $860/month and we've had someone offer $1800/month to rent it.

For the $140k payout after the sale then you have to take out the realtor’s commission and taxes that would only leave me a few months of $$$. It would not be worth it for me. I’d let it ride, rent it out and have someone else pay the mortgage. But that is me and many say that I am not the sharpest tool in the shed. :aniteef:

 

[Looking Glass]

On one hand, I have always personally felt that anything I even entertained the idea of selling was already sold, just had not been transacted.

the more I think about it, the less I could possibly give you a full comprehensive answer.

FWIW, LOF has said to keep it, and I feel like that is pretty authoritative and informed (but what do I know) so prima facie, keep it seems like the best advice.

in my musing I thought about alternative investments and the coupon value of a comparable bond that would pay you around 1600/mo (1800 less ~10% upkeep) but it started to get complicated by the local market and the doomsaying about the Colo river drying up...

so instead, here is an image of "Disaster Girl'...she is now 21 and just sold an NFT of this image for $430k.

you can never tell if the house will burn or if just the picture of it burning will be a better investment
View attachment 996624

SO!!, There's No Problem with the Colorado River Water?

Since we are on the Subject of Buying and Selling, I have some things I will sell you.

 

[Christopher Lucero]

YAY!

 

[Looking Glass]

View attachment 996761
YAY!

Lake Mead is 130 Ft. lower than it was in 2000.

No Problem here.

 

[Christopher Lucero]

No Problem here

denial gifs images - Google Search

www.google.com

lake mead water level top stories - Google Search

www.google.com

 

[ChrisKoller64]

The most logical thing to do here is sell, take the cash and spend it all on hookers and blow in a Las Vegas penthouse. I'm surprised nobody has suggested this already.

The advice I was looking for! Don't have to worry about what the market does or inflation if the money is all gone!

 

[Englewood]

HODL...A rich investor once told me, you make your money on the purchase, not the sale. Basically, hold on to everything for as long as possible.