[quote=yipla]Yes, that’s right I can’t take cap gains on Clairemont. What’s are good reasons for holding long term? Long term is not work-free… Rents commanded are not a ton more than my mortgage and maintenance costs. In fact, I don’t think I’ve yet broken even with the maintenance I had to do in the years I’ve rented it out. Perhaps those deferred maintenance issues are done now, and I won’t have as many large expenses anymore. If I sell, even without cap gains exclusion benefits, I would still cash out a decent chunk and could just dump it into the stock market. Maybe I’ll wait and see if Build Back Better actually passes and kills step-up in basis at death. Or maybe I just hold until these times of massive appreciation stop/slow.

I agree on UC. Plus our neighbor there is a real thorn.[/quote]

You are missing three things in CM.

1 You are paying down principal
2 It is appreciating
3 Rents are rising but your mortage and taxes are basically fixed

As for UC the opportunity to walk with a few hundred K tax free is potentially life changing as you can pay off/down your current debts, improve current home, fund retirement or college for kids so that would be mighty tempting for me. One thing I agree with is that bad neighbors evenutally move. After 17 years I got rid of a lousy one last Summer. Now I have new neighbors I love who have very young children. They will likely stay as long as Im above ground. This place Im planning to leave as a generational asset