WWMD: Should I sell my house?

[babybear]

I want to be closer to things but right at the edge of that envelope

yes this is the sweet spot.
Right now I feel good about mine-- a few miles South of town craziness. Close enough to ride if needed, but not too close.
I like a little elbow room

[Skistack]

Good to know. I haven't had a chance to study the real estate tax laws or speak with my CPA.

If the property is your primary residence 2 out of 5 preceding years there's no tax on the first $500k of gain. New tax on gains is 0%, 15% or 20% based on your total income.

Also, you cannot do a 1031 exchange on a primary residence, but your can convert it to a rental property (wink, wink) and do a 1031 exchange. But then you must invest the proceeds into another rental property. And you're only deferring the taxable gain, when you finally sell a property and do not reinvest in a like-kind property the deferred gain will be taxed.

[riser4]

Yes, for this wife, how much?

edit: dammit. beaten to the punch:

He apparently didn't get the reference. Of course, at 29, how would he?

https://youtu.be/mvZgwtpPmLY

[TAFKALVS]

He apparently didn't get the reference. Of course, at 29, how would he?

https://youtu.be/mvZgwtpPmLY

Add in the fact that I grew up in the woods and barely watch TV. It's surprising some days that I can even log in to this TRG website and make shitposts.

[MiddleOfNight]

Bought a foreclosure in the mountains last year at a impossibly low price.

Question: Is it tough making your current note? Do you like your jobs?

Even an impossibly good deal on a foreclosure can be a big $ burden every month, unless you're a dentist.

Ms M.o.N. and I are here too:
Want to sell, pay off note, downsize. Take this job and shove it. Work fun jobs part-time, to support fun habits full-time. Simple.

In our case the note is almost all our money, which means too much time working jobs that suck. If we had no note, (or an easy note) it'd be a different conversation.

Find a place that checks the important boxes, has less (or no) financial burden - man take all that money and run and don't ever look back.

Someday we'll all wish we had more time *not* working jobs that suck.

Good luck. Interested in how it works out for ya.

[shroom]

WA real estate, man. most owners around are in your shoes with more years on the clock and a lot less flexibility. if it’s not your ‘forever’ and you have an exit plan, take the bird. convinced both my ‘rents to do the same in the last 6 mo, so my opinion is pretty strong here.

[Harry]

Sell.

Show up at BBI@Utarded in your new EarthRoamer.

[CascadeLuke]

Declutter and get’r on the market. Ask an accurate price and hope for the best. If things slide and it doesn’t sell your decision has been made for you. Then hang in property and prepare for when things dip and then grab your 1st rental. Perhaps profit on your mountain house by moving in your smaller place years after that. You want to be a mogul and I applaud that, unfortunately you can’t force the timing. And if you do force it, I’d argue it will be much harder to be a slumlord.

[Bobby Stainless]

We takes da money, Lebowski!

This.

Sell.

Show up at BBI@Utarded in your new EarthRoamer.

Or a Ghurka.

[Vt-Freeheel]

Grab that other foreclosure and hustle to get it rehabbed. Sell first house when market and tax benefits are most beneficial to you. Buy a single family house closer to skiing and a couple of rental properties. Get a part time job at a ski shop for the deals and social interaction. Boast to everyone how they are doing it wrong. Change your user name to Rog2.

[thefortrees]

If you keep up the mountain bike purchases, You’re gonna need a shitload of rental properties to fund the habit

[Timberridge]

Get a part time job at a ski shop for the deals and social interaction. Boast to everyone how they are doing it wrong. Change your user name to Rog2.

Rog2 can at least claim he did it on his own. OG Rog inherited the properties.

[riser4]

Sell. Bird in the hand is worth two bird's bushes that you didn't get to handle. Or something like that.

[farmer]

I could care less about urban location. I should reveal, another bargin mountain foreclosure with similar sweat equity potential is on the market, equally far from town. So it would potentially be a lateral move but I could nearly pay cash for it and still have plenty left over for investing.

I am turning 29 next week. My goal is to be financially independent by age 40. Could this be the move that helps make that a reality?

Do it.

Sent from my Moto G (4) using TGR Forums mobile app

[fatnslow]

Wait out the two years before selling for the tax benefit and do another one. IF you and the wife have a kid it will change everything.

[TAFKALVS]

Thank you everyone for the input.

Here's the current game plan we're working with.

• Continue to live in the house for at least the next year. Avoidance of capital gains tax needed.
• Rent the upper 2 stories of our house via Airbnb/VRBO. Stay in basement or our camper. Aim to cover mortgage each month when it makes sense. (Spring through Fall. Will not rent in Winter, driveway is too much of a liability.)
• Investigate the other foreclosure I mentioned above. Potentially purchase and rent via airbnb/vrbo. Unique riverfront location, 40-50% below current market value. Another sweat equity fixer. If all else fails and our primary home is rented via AIRBNB and this one is vacant we would stay here.
• See what market does.
• Any profits/positive cashflow from renting the 2 properties would be saved for future purchases. Same with any extra income earned beyond basic living and a little fun. (A guy's gotta ski)
• Make decision next spring on how to proceed. If Airbnb is working, keep moving forward with that. If things are slow, sell 1 or both properties.
• At that point, potentially purchase a mixed commercial/residential space to live in during the work week, rent nightly on weekends, and also have commercial space(s) rented.

Thoughts?

[Foggy_Goggles]

^^^Don't forget to analyze risk/leverage. Do some scenario analysis. What if...I lose my job, values go down xx%, the county cracks down on STRs, etc. "I will just rent it out" didn't work so well when the last bubble popped. Cash is King. Don't confuse investment with your home. 40-50% below market value is bullshit. If that is really the case just flip it. There are no real estate experts. There is no free lunch.

[::: :::]

...not a single word about the maggot-only rope tow on property?

[PNWbrit]

Rent the upper 2 stories of our house via Airbnb/VRBO. Stay in basement or our camper. Aim to cover mortgage each month when it makes sense. (Spring through Fall. Will not rent in Winter, driveway is too much of a liability.)

I think you're overestimating the desirability or rental value of a property in your neck of the woods and being so remote and with owners living on premises and the particular lack of demand in spring and fall and the lack of weekday demand generally.

Talking as someone with a Cascadian airbnb/VRBO rental property.

Shoot me a PM if you want more info but I bet the possible revenue you'd make from camping in your own basement would be so minimal to be not worth the hassle.

[TAFKALVS]

^^^Don't forget to analyze risk/leverage. Do some scenario analysis. What if...I lose my job, values go down xx%, the county cracks down on STRs, etc. "I will just rent it out" didn't work so well when the last bubble popped. Cash is King. Don't confuse investment with your home.

Those are the nagging questions for sure. My job is pretty solid, (I built a company from the ground up that now employs 17 people) but some of the other questions very real.

40-50% below market value is bullshit. If that is really the case just flip it.

I should say, it's 40 -50% below what it COULD sell for if someone put in the time and effort to rehab it, just as I did with our current home. It's a partially completed custom home. I'm looking at it tonight to see if it's worth messing with.

There are no real estate experts. There is no free lunch.

Everyone seems to be a real estate expert but they all charge a fee for their 8 step seminar program.

[byates1]

Brutah has a point. ^^^

As for emotional attachment, ignore that crap. I'm in my fourth house, and as much as I love it, I'd sell in a heartbeat for the right price. It's just a building.

exactly. sounds like you do not have children. that is the carte blanch card(?).

i have a van. i have a small 2 bedroom cabin in the adirondacks. i airbnb the fuck out of my home. i'm getting paid 1000 a week to sit around at lakes and drink beer w girls in swimsuits. just saying.

if no kids. do whatever the fuck you want. and on the upside you'll have less assets in your divorce( certainly not wishing that on you, but analytics are analytics.)

isn't there a first world white male problem thread somewhere

[TAFKALVS]

I think you're overestimating the desirability or rental value of a property in your neck of the woods and being so remote and with owners living on premises and the particular lack of demand in spring and fall and the lack of weekday demand generally.

Talking as someone with a Cascadian airbnb/VRBO rental property.

Shoot me a PM if you want more info but I bet the possible revenue you'd make from camping in your own basement would be so minimal to be not worth the hassle.

I will do that. My neighbor rents their M-I-L for $200 a night with a 20% occupancy but they only rent word of mouth. So I have some hope. Part of it would just be to go through the exercise and learn more about the process. We can cover our mortgage just fine.

[byates1]

Rog2 can at least claim he did it on his own. OG Rog inherited the properties.

oh snap.

[byates1]

Praxis Rx

consistent and always funny

[Sirshredalot]

I will do that. My neighbor rents their M-I-L for $200 a night with a 20% occupancy but they only rent word of mouth. So I have some hope. Part of it would just be to go through the exercise and learn more about the process. We can cover our mortgage just fine.

It sounds like you're really thinking of local RE as your best investment. You need to compare it with what just leaving the $$$ in the stock market would do for you. Unless you have substantial assets parked elsewhere, you're talking about taking on a lot of leverage in order to buy assets that are VERY highly-correlated in their returns AND have a history of high volatility. It's a risky bet, and it may well pay off. But if it doesn't, you will get fucked hard.

Back of the envelope math suggests that if you park your 100k in the stock market and don't touch it for 10 years, it will double. And you don't have to hang drywall, pay to heat it, or field phone calls from tenants who have flushed half a dozen tampons down the toilet at 2 AM and are bitching at you about your inadequate plumbing.