Fifteen years ago our client purchased her first home, out in Star Ranch. She lived there for just over twelve of those years before deciding to purchase a condo and move closer to work.
In doing so, the one story in Star Ranch was converted to a rental, always with the intent of selling it prior to the expiration of the IRS “Two in Five” rule (i.e. avoid paying capital gains on a property she owned outright).
We met back in March to start formulating a plan.
The renters would be out at the end of May. We’d go in and “execute the approach.” We’d have the house on the market by the end of June and position ourselves to capitalize on the “summer market trends.”
Well, it didn’t necessarily happen that way.
For starters, there were some complications in getting the renters out ‘on time.’ Communication issues with the property management company followed. It was the end of June before we even got in to see the house. The first time the owner had laid eyes on the interior in two and a half years.
It wasn’t pretty … Dog-chewed door frames. Gashes in the wood floors. Splatter paint on the walls (yes, splatter paint). Broken appliances. A busted sprinkler system and neglected backyard …
You get the picture.