I have a condo in FL that I’ve been living in for almost 2 years and am about to find a new home. I’d like to hold onto it as a rental but with HOA fees, mortgage, and taxes I don’t think it would cash flow (maybe break even). I’ve heard that there are no capital gains tax on your primary residence as long as you’ve lived in it for two out of five years. Is this true? Either way, if I do sell the condo, I’m thinking of using the proceeds as a down payment on a future investment, possibly a rehab project that could produce a positive cash flow. What is my best bet given the situation? Maybe a 1031 exchange? I really want to use the money from the condo toward another investment but my next home (primary residence) would have to be close to 100% financed. Any advice would be greatly appreciated.
Z in FL