Sell or keep SFH in South San Jose

Hi All

I just want to have feedback from all of you with different perspectives.

Our tenant plan to move out for buying home in Almaden Valley.
SFH
Zip code 95123, Lennar community, has a fancy club house
2165SQ, 4 bed and 2.5 baths with 2 car attached garage.
HOA ~$260ish
Renting income previously as $4,550 (+$50 for a pet)
Mortgage $4,055.99
Loan Residensial loan $940.734.21 7YR ARM 2.875% until 10/01/2026

Barely make positive $234ish without vacancy and property tax.

Property tax $14,153.58

Estimate property value 1,408,100~1,455,466
Purchasing price 889,300

We lived in this home for 5 years and move out new home and rent it for almost one year. So 500K tax exemption window is closing, left 2 years from now.

In 2019 I did cash out refinance 7yr ARM, around 300K to buy current home.

Should I sell it and take the benefit of a 500k tax exemption or keep it refinance as an investement property?

Thank you in advance.
Jason

The 500k tax benefit is yours anyway even if your gain is more than that. Whether you should sell depends a lot on what will you do with the money realized from the sale of the above property. Do you have better plans to put that money to work?

1 Like

Is it 95123 or Almaden?

  1. Avenue one, 5 yr old community, near Safeway and Cottle rd.

I recommend selling the property. While the tax exemption is an attractive benefit, selling now could lock in your gains, especially if the market is performing well. This would also free you from the responsibilities of property management and potential market fluctuations, providing you with the opportunity to diversify your investments and pursue your future plans with greater financial flexibility.