I only skimmed this board and the answers therein. This is a good group to help with this kind of decision.
I just wanted to warn you about this statement:
“i don’t want to net less than 400k”
This is a poor decision point. How much you make is irrelevant to the decision at hand. I know, it is hard to grasp this concept, but please try – you’ll be better off.
The question is – are you going to be in a better financial situation if you sell or if you don’t sell? That is the only question to answer.
Put several scenarios into a spredsheet, first assume you don’t sell then put in scenarios for selling now and buy back in 3 years, 5 years, 7 years, etc with varying depreciation figures. Don’t forget the “I don’t sell now, but am forced to sell due to a life change in 3 years.” scenario. Is your busines related to the RE industry? If so, worry.
Consider the cost of your time to facilitate a real estate transaction, the cost of moving, changes in property tax rates, tax breaks on mortgage interest, depreciation, 6% transaction fee for buying/selling, interest on any profits you can make (7% seems high, and don’t forget taxes on those earnings), the cost of renting, etc.
Even if you only make $200K by selling today, if the house price drops by $200K and you didn’t sell, that is $200K you won’t have.
My intuition tells me you are more on the “sell” side than the buy side.
