Alright, I would like to hear some opinion's... about what to do....



I currently own a condo in tyson's corner that i got closed on this past March...

I paid 407.5 for it with 100% financing...

So the last three places sold (or are coming to settlement) at 375, 380, and 385 for comparable units.

I have no way to avoid capital gains tax at this point, but my girlfriend (and co-owner) is about to finish up getting her real estate license and can represent our side to at least get some money back...

I also have another place being built down the road a few miles closer into DC that won't be ready until January 07 and is locked into price already with 6% down.

I am going to pull some money out of the first place soon one way or the other...

So I am trying to figure out whether I should just refinance the first place and pull out 20-30 and change over to a 90/10 having 10% equity instead of 0%.

or do I sell the place, cash out about 35-40, and rent at $800 a month less than my mortgage for the next 18 months....



my fear is that if the market does go down below what i originally paid for it, i won't be able to sell it and get into the new place being built (which is way nicer than the place I am at), but on the flip side I hate to jump the gun on not making more profit (which is the only reason I bought the place I am in now in the first place)

the place I am at went up about 250 over 3 years before I got it, but only had gone up about 35K the year before I got it, it is up almost 75K in the last 4 months and I am imagining it will be a temporary peak at least shortly

 

From the sounds of this you are already losing money. You paid 407, they are now going for 380. You have 0 equity, how exactly do you plan to refinance that? It sounds like you are screwed.

 

yeah that sucks, i meant 475, 480, and 485....

otherwise i would have already killed myself

 

I'd either refinance or wait for the 2 year period to be up so that you can take advantage of tax free gains. To sell now would be financial suicide.