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.
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?