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Final Chapter: Book 1

11th January 2007

Dave

Once the place was nearing completion it was time to think about how to sell the place. After sitting down and figuring the total cost of the renovation and recent comparable sales in the are, I had a good idea on how much I would net on the sale. I soon discovered that that short term capital gains on the sale would eat into my profits significantly. It occurred to me that that I would be far better off selling the place I was currently living in. Basically, if you have lived in you main residence for at least 2 of five years, you are able to sell the property and exclude the gains up to $250,000. Of course their is much more to it than that but I definitely qualified for the exclusion. I decided to sell my existing home and move into the one just renovated.

I could start a whole new blog on my experiences with real estate agents, showing homes, home offers, staging home decor, closings and such but I will save it for a different time. I’ll keep it short and just say that it took me right at 3 months to close the deal, but considering the housing mortgage crisis we were in at the time, I did quite well. I sold for less than I had planned and there were a few minor setbacks but overall I’m satisfied with the outcome.

One drawback was that once I closed on the sale, I had to close the line of credit. One of the stipulations on the contract was that I had to live in the property as a primary residence. It is possible that I could have got a release on that term of the loan, but I decided to close it out. It would have been nice to keep the loan active and draw on it as soon as I found a new project , but instead I’ll start over scratch. I’ll most likely incorporate before I start the next.

I’m in the new place full time now. I’ll spend the next 2 years upgrading and finishing the home decor and such. I’ll have a much better idea of what to expect next time. I’m looking forward to the next project, but I’ll take a break for a bit.

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