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IceCreamforLunch t1_jeauzr2 wrote

If you're eligible for the exclusion and know that you don't want to own it forever then get it sold and laugh all the way to the bank with those tax-free gains. If you try to time the market you may be forced to sell for less in a year to get it done before the clock runs out.

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RMN1999_V2 t1_jeaw9oa wrote

This is the only advice you need. The taxes are greater than that amount you are worried about not getting by timing the market. Easy decision.

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weiner_forest t1_jeaugrq wrote

If you're not interested in being a long-term landlord, then just sell it.

I take it you lived in it for at least 2 years before you started renting it out?

https://www.realized1031.com/blog/what-is-the-2-out-of-5-year-rule#:~:text=The%202%2Dout%2Dof%2Dfive%2Dyear%20rule%20states,the%20date%20of%20the%20sale.

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PlaneBlueberry2034 t1_jeb0put wrote

yes lived in it for 5 years before we started renting it out 1.5 years ago.

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weiner_forest t1_jeb1gus wrote

Yea just dump it. Market conditions aren't likely to shift back to 2021 levels again, not without low interest rates and continued high inflation. If anything, it's more likely to be worth less in 1.5 years.

But.. as others have said, don't time the market. If you don't want to be a landlord, dump the asset and reallocate the cash to investments you do want to be involved in (or passive).

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Jmb3930 t1_jeaw3qk wrote

Why do you think mortgage interest rate will be lower next year?

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PlaneBlueberry2034 t1_jeb0rzp wrote

read different articles saying expect rates to increase until end of 2023, and then they will begin to drop in 2024.

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weiner_forest t1_jeb2hej wrote

Wishful thinking by a bunch of people who already said J.Powell would pause interest rate hikes 100bps ago. If regional bank failures isn't enough to stop hikes, I think you can take him at his word that he's not going to lower rates again for at least a few years.

Buckle up, this ride isn't going to end any time soon.

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