Quote:
Originally Posted by look 171
George,
The only upside to selling current home is the 500k cap. gain tax. Since its their primary res. they get away with that huge number. Its really free money. A friend's a banker and have always trying to convince me to sell to take advantage of this.
I will have to say this, fix the house to a much nicer then livable condition of a normal home will get you some extra monthly rent money, again not much more then 2-400 bucks. That's a lot unless its high rent district like West Hollywood or Santa Monica.
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$400 / mo will be $5k/year or 10 years to recoup $50k. By then the house will need another remodel.
I hear you on the 500k cap gain tax break, but selling is also an automatic 10% penalty. 6% realtor fees and easily 4% on getting it ready and fixing stuff coming up during inspection. That's what's always kept me from selling for an "upgrade". I am easily pleased though. Don't worry much about laundry rooms, kitchen upgrades or bathrooms, as long as everything is functional. My tri tip BBQ tastes exactly the same and is cooked on the patio!
G