Hi. I am selling a property that a family member lived in. It didn't cash flow because I was helping her out, and it still won't cash flow now anyway due to the high purchase price & current rents. Here are the numbers:
Purchased for 250k
Selling for 315k
Cap gains to be incurred: appx 63k (after closing costs, fees, etc)
I've been considering finding a cash-flowing turn-key property or two out of state (I live in CA), but I'm not convinced its a good idea. A 1031 exchange will save me about 13k in taxes, but is it worth the headache of becoming a landlord all over again? I wasn't thrilled first time around, so I'd definitely put the properties under management...
For the record I'm 49 and another 2-3 years away from FI.
What are your experiences & thoughts? Many thanks!
Purchased for 250k
Selling for 315k
Cap gains to be incurred: appx 63k (after closing costs, fees, etc)
I've been considering finding a cash-flowing turn-key property or two out of state (I live in CA), but I'm not convinced its a good idea. A 1031 exchange will save me about 13k in taxes, but is it worth the headache of becoming a landlord all over again? I wasn't thrilled first time around, so I'd definitely put the properties under management...
For the record I'm 49 and another 2-3 years away from FI.
What are your experiences & thoughts? Many thanks!