Selling Versus Renting
I have a pretty rudimentary question that I am struggling with as a newbie investor.
I bought a condo two years ago (primary residence) that has appreciated decently (I would say average appreciation rates) and now I want to get into something bigger. However, I am not sure if I want to sell it and take the gains tax free or if I want to rent it out and see if I can get a positive cash flow.
If I cannot get a positive cash flow, I can deduct my losses, correct?
This is all based, of course on my elementary understanding of tax breaks that people get on thier first primary residence that they have lived in for over 2 years. Is it correct that all gains in this situation are tax free?
I am not sure if this matters but just to throw it in the mix, this year I bought two pre construction properties in another state with two other partners. One of those properties we had planned on closing and renting... listed as a second home. The other we would like to assign the contract and not have to close at all.
I am eager to get advise, watchouts, words of wisdom, decision factors....etc etc etc from all of you who have been around this block before...
Thanks in advance!!!
Thanks! That helps quite a bit....