I have a 2 bed 2 bath condo in Fremont. It’s just a 5 min walk to BART station. I could rent it for $2.7k a month and would break even on my mortgage payment. I am moving to Seattle in a month. If I sell it, I can get around $400k in equity and can use it as a down to get a nice place in the Seattle Area. Looking for advise on the following questions. 1. What tax benefits would I get when I rent? 2. Will Seattle/Bellevue market grow faster than Bay Area in the next few years? 3. Is buying another condo in the Seattle/Bellevue Area a good idea? Thanks in advance for the inputs :)
I have an investment property and I rent it out. Almost everything I spend on it is tax deductible: Property manager fee (if any), HOA fee, repair/maintenance fee, miles driven to collect rent, property taxes etc., but I think you have to declare it as an investment property to be in good books with irs.
Why moving?
You may come back to the Bay area in a few years. Keep it.
Sell. The reason I say this is the taxes Ca will take from you. If you have a loss on your property in a tax year you cannot deduct on State taxes only Federal. If you have a surplus, Guess who wants a big piece of that pie! I did the Seattle, CA bit with a rental. Sell and buy in Seattle to save the headache.
Sell. The hassles with renting are real unless you have an on-site property manager.
I have the world’s best hassle free property manager. Not sure how I’d manage tenant issues or property concerns without their team.
Is this in the sf Bay Area ? How much do they charge and what kind of arrangement is it? If you’d prefer to not share this in the get, would appreciate a private message. Thx.
Keep it - breaking even with Mortgage is great in this market, considering Fremont area real estate is going up 2-3% YoY. It’s wild. Keep it for a few years then sell (especially if you don’t need the money for your new house in Seattle)
How long have you been at this condo? If it two years or more. You may want to sell it in the next 3 years to get your gain tax free
Y next 3 years?
2 in 5
I think selling is better. Seattle real estate is crazy right now. Buying is better. Ultimately you should work out how much interest you'll pay if you don't put the 400k down vs how much the condo will appreciate in the next few years.
How can selling and buying both be good?