Need input for decision making

I currently live in SFH and buying another SFH in a different neighnorhood to make that my primary residence. It’s been 4 years in my current house and I know if I sell it now I dont have to pay capital gains taxes. But, I really want to rent it and hold for cash flow, potential rent $1200 and my PITI is $798 so pretty solid cash flow of $327 after $75 for property management.

Now my question is, if I sell this house after 5 years of renting, will I still be entitled to get capital gains tax waiver as it has been my primary residence for first 4 years of ownership or will it be voided by converting it to rental.

Thanks in advance for your input.


As long as you have lived in the house 2 of the last 5 years prior to you selling it.

Blue moon, Thank you for the post.


All, Thanks for reading the post. I have another question. The inspection came out and it failed radon test. I was scheduled to close on Oct 25th and the seller is supposed to do radon mitigation on their expense. Now the mitigation scheduled for Oct 26th , the day after the closing. My realtor is asking me if I am willing to close it and later do the radon mitigation as the closing company is going to hold back the expenses towards mitigation from the seller. I really want to close asap so I can get my house ready to rent. As I am in midwest , trying to get my current home rented before it gets too cold as rental market could slow down (this is my speculation).

My question is , is there any risk by closing before the radon mitigation? are there any cases where radon mitigation cannot be done and it soon became more expensive affair to fix?

Thanks in advance for reading and posting.