I am 23 yrs old and purchased a condo in Las Vegas NV. I purchased the Condo at 157,500. I owe 148k. (about 9k down) I live family at the moment in Cali. I’m renting the place out for $750 a month. My mortgage payment is $1035.00 a month. Plus $112 for HOA. A total of $1147 a month. Negative cash flow of about 400 bucks a month. PMI is needed. I was eager to jump into the market a year ago. The condo’s are worth over 200k now. Easily…About 50-60k in equity. I want to sell soon but heard I’d get taxed on it big time. I am clueless right now. I don’t think i was ready to invest. I should have read more. I just signed a new tenant at 750 a month for the next year. I got a 30 yr fixed loan at 5.625%. I think back…I should have gotten a interest only loan if I planned on selling in a few yrs. Well I guess my question is…Getting taxed on the property How much? Where can I find out? Or any recommendations? I’m thinking about selling and getting the equity I have on it. How can I save as much money on the property? Should I sell it myself? Should I get a realestate agent…I got it as a first time home buyer loan. :
selling would be a pretty good idea, and you would be taxed as a capital gains; the big problem you are going to have is that a buyer would more than likely not be happy with negative cash flow at the $750 per month that would go with the property as a lease. you may want to try to buy the tenant out if you get a buyer.
2004,
Have you ever lived in the property or is it a “purely speculation” property (I know it’s not an investment property because it has a negative cashflow!)?
Keith
And, BTW, your negative cashflow is well in excess of $400 a month because you haven’t factored in maintenance, managememt, vacancies, etc.