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[quote=Anonymous][quote=Anonymous][quote=Anonymous]Assuming your question is a financial one...

Assume you net $300k on the sale.

You'll receive $26,400 in rent.

You'll owe $5k in taxes. Assume you'll need to pay $3k in expense per year. And assume you'll have 0% vacancy rate.

You'll net about $18k/year on an asset you could net $300k if sold. That's a 6% cash on cash return under ideal circumstances.

Or you can get a 5%+ return by parking the $300k in short term treasuries -- risk free and no hassle of being a landlord.

Or you can get more than that in other marketable investments.

Sell it.
[/quote]

Your return calculations don't include appreciation on the property. If the property appreciates at 3% a year, then the return is boosted to 9%.

Note, however, that if you decide to rent the property out, and you do so for more than 2 years, then if you eventually sell the property you will have to pay tax on the capital gains. In contrast, if you were to sell the property now, and then buy a new primary residence, you would be exempt from capital gains. This is an important consideration.[/quote]

Can't she move back to the house for another 2 years and make it her personal residence again and then sell and avoid this capital gains tax? I don't think it's that unusual.  People move away for 2 years for work overseas or if military, rent out their primary home, which becomes a rental, then return back and occupy it again.  If they decide to sell are they really going to be paying capital gains if they had a history of it being a rental?[/quote]

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