My rental property value went up by at least 100k and I would qualify for 121 exclusion on the 100k gain (I lived there 2/5 years). Would you sell it now and take the 100k gain tax-free or continue to hold on to it long-term for positive cash flows? Any advice is greatly appreciated!

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Long term unless you’re in dire need of the proceeds. Your tenant builds equity for you plus your property is bound to appreciate long-term.

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Yes I get it as we own a few rentals for that reason. This is just a unique advantage plus cash is king right now with high interest rates. So many ways I can invest with the cash.

What would you do with that $100k? If there is a better investment then go for it, but if it’s just going to sit in your bank account then hold on to it.

So many thing I can do if I cash in. Cash is king right now especially with high interest rates. I can earn 8% interest easily or more if I invest in EFT, index fund, stocks.

How positive are the cash flows? How long until a major maintenance item comes up?

$1k or more per month, and no major replacements in the next 5 years (Hvac, roof, appliances are all less than 10 years old) and I might consider holding. Anything less and I would sell and take advantage of the tax feee growth since that’s a limited situation.

Personally, I’d cash in and move on, as long as you have a good home for the gains.

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Gain exclusion doesn’t matter if you never sell. If you need cash, just refinance.

No I don’t need cash. Just doing some tax planning to diversified my portfolio and maximize tax benefits and cash with high interest rates.

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