4 ms·
You should double check the rules, and this is a pain in the ass and potentially problematic given that it will be harder to find a tenant during a pandemic, bu
by berberous 6y ago
You should double check the rules, and this is a pain in the ass and potentially problematic given that it will be harder to find a tenant during a pandemic, but if you rent for four years you should be able to do a 1031 exchange and avoid cap gains. You move out, and rent your existing home for at least 2 years, then do a 1031 for the new house, then rent that one for at least 2 years. If the old and new property are rented for at least 2 years, i believe there is a safe harbor that deems them investment properties for purposes of a 1031 exchange.
You still have the problem of much higher property taxes due to prop 13 though.
- lisper 6y agoAppreciate the suggestion, but becoming a landlord is an investment decision, and like all investment decisions it comes with risks and opportunity costs. It's an orthogonal issue to the fact that moving is actually more expensive when real estate prices rise even if you are already an owner.