Best bang for the buck?

Question

Hi everyone,

I am trying to find out what I should do with my current personal residence.  We currently have about 60K in equity in our current house and we want to get into some single family rentals.  My question is, do we sell the house, move into another house and take the gains to put down payments on rentals,or do a cash out refi for rental down payments and either stay in the house or move out to make it a rental?  Currently have a 30yr fixed VA mortgage and am about 5yrs into the loan.  Any thoughts and/or ideas would be great.  Thank you!

Mike Hansen · Answer

Since this directly affects you and your family's life, I think whatever you choose needs to fit into your lifestyle.... Choose a scenario that feels most comfortable.  Do you like the place you're in now?  Do you want to stay in it?  Like the neighborhood/schools/commute/etc?  If so, borrowing against it to pick up something to rent makes sense.  If you're not in love with your existing place, then you can entertain selling/moving/etc.

Mike

Andriy Boychuk · Answer

My personal goal is following.

I live in my primary residence for 1 year and have around 50% equity in it. I plan to start selling the house in Feb 2015 to save on taxes on profit. My plan to buy 2 or 3 family real estate (I did not decide which one exactly yet). I wan to live in one unit and rent 1-2 other units. My goal to live for free or close to zero to be able to save money for my dream house (I want to design and build my own).

I am sharing it just because some part of my goal might inspire you.

Duane White · Answer

Hi Andriy-

Thank you for the idea, that is defiantly something we are going to consider.

Andriy Boychuk · Answer

Did you consider to buy duplex or triplex instead of single family?