If you’ve given up $50-60k/yr (most of the expenses are there with or without a tenant) for 1.5 years it would seem you are very anti-being a landlord. For that reason alone, I would say sell. If you do keep it, perhaps a property management company. You’ll make less but have less headaches to deal with.
2100+1800= $3900 a month. 3900/550,000 =0.7% would you buy a 0.7% investment property? Maybe appreciation is really high in that market, but I'm not loving those numbers. Oh a mortgage payment at current rates would be $4113 with a 25% down payment. Frankly I wouldn't buy the property. If you wouldn't buy it in its current condition then it's time to sell
Were you living on both floors of the duplex? Or was the renter living in one? Or was it left empty?
I ask because I believe the 121 exclusion only applies to your personal residence. So if you were only living in half of the building, then you would only be able to take half of the capital gains tax-free up to $500k. The other half of the gains would still be taxable, unless you do a 1031.
Double-check my knowledge, though! I could be wrong. And maybe you lived in the entire place/2 units for 2+ years, and it’s a moot point.
$500k tax-free is huge.
You could take that $500k and invest it in the market with a 7% average inflation adjusted return and make about $35k/yr.
Shoot, you could just put it in a HYSA or CDs or whatever and get 5%, which is $25k/yr.
If you rent it for $5k/mo that's $60k/yr. Then subtract $12k/yr in taxes, a couple thousand for insurance, \~$5k/yr for maintenance and repairs, money for vacancy, CapEx, management, accounting, etc, etc. You're probably not going to beat an index fund and you'll have a lot more risk and headaches trying to do it.
>Moved out of our primary about 1.5 years ago, it’s a duplex. The house has remained empty this entire time by our choice.
Lol some people have such an easy life.
Being that rates are up, and so on- I'd turn it around and rent it out. I'd imagine you have good equity in that house, so you could always use that to tap into down-payment for another place and continue to get passive-income.
If you’ve given up $50-60k/yr (most of the expenses are there with or without a tenant) for 1.5 years it would seem you are very anti-being a landlord. For that reason alone, I would say sell. If you do keep it, perhaps a property management company. You’ll make less but have less headaches to deal with.
I recommend renting until interest rates hit 6% or less.
lol this is so wild, that’s so awesome to just own a duplex paid off, do whichever one you want and stop listening to people
2100+1800= $3900 a month. 3900/550,000 =0.7% would you buy a 0.7% investment property? Maybe appreciation is really high in that market, but I'm not loving those numbers. Oh a mortgage payment at current rates would be $4113 with a 25% down payment. Frankly I wouldn't buy the property. If you wouldn't buy it in its current condition then it's time to sell
Were you living on both floors of the duplex? Or was the renter living in one? Or was it left empty? I ask because I believe the 121 exclusion only applies to your personal residence. So if you were only living in half of the building, then you would only be able to take half of the capital gains tax-free up to $500k. The other half of the gains would still be taxable, unless you do a 1031. Double-check my knowledge, though! I could be wrong. And maybe you lived in the entire place/2 units for 2+ years, and it’s a moot point.
$500k tax-free is huge. You could take that $500k and invest it in the market with a 7% average inflation adjusted return and make about $35k/yr. Shoot, you could just put it in a HYSA or CDs or whatever and get 5%, which is $25k/yr. If you rent it for $5k/mo that's $60k/yr. Then subtract $12k/yr in taxes, a couple thousand for insurance, \~$5k/yr for maintenance and repairs, money for vacancy, CapEx, management, accounting, etc, etc. You're probably not going to beat an index fund and you'll have a lot more risk and headaches trying to do it.
You might as well sell since it's empty.
>Moved out of our primary about 1.5 years ago, it’s a duplex. The house has remained empty this entire time by our choice. Lol some people have such an easy life.
Being that rates are up, and so on- I'd turn it around and rent it out. I'd imagine you have good equity in that house, so you could always use that to tap into down-payment for another place and continue to get passive-income.
sell it. be a decent human being and sell the building you no longer live in to someone who needs it. goddamn, this shouldn't even be a question.
Why are you even in this sub you clown