Should I rent our duplex or sell it and use the equity for our new house?
My wife and I have been in our duplex (we live downstairs, rent the upper) for about 2.5 years. We’re now looking at buying a larger single-family house.
My question is whether we should sell the duplex and use the equity to buy a nicer house or if we should keep the duplex and rent it out and try to scrape together the down payment to buy a larger house and maintain both.
The rent money would just about cover the monthly mortgage payments of the duplex, but I’m worried about owning 2 properties and the possible maintenance involved. Plus I hear you get nailed with a big capital gains tax on investment properties when you sell and haven’t lived there for more than 3 years.
Yet, I’m tempted to keep the property and use the equity as a retirement nest egg. Any advice?
Rent Back Fast
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May 31st, 2010 at 11:19 am
Unless you can keep a real close eye on your renters and how they treat your place, I wouldn’t rent. Most people don’t care enough about your stuff. I’d sell.
We’ve rented for a while. Big pain in the rear.
June 3rd, 2010 at 3:15 pm
Looks like purchased at the top of the market, which has since tanked, before you decide anything would get an appraisal as to what you home is worth, you most likely do not have the equity you think you do, if you financed 100% you definitely do not
June 6th, 2010 at 7:38 pm
Please do not “slide” into landlording. Only 1 person in 10 has the correct personality to be a landlord. It is not a hard job. But it takes a certain person to be able to say no to bad tenants before they move in. And you have to accept being lied to. And people getting a dog 2 days after promising you that they don’t have pets. If you can handle this, go ahead and rent it.
Otherwise, i tell 9 out of 10 to sell and get the money..