"Bad" First Home Purchase and House-Hack, Thoughts?
@Scott Trench ruined my first home purchase. Just kidding...kind of, but in a good way.
This year, May 2017, I bought my first house. Renting felt like I was throwing money away so I thought I was making a smart investment when I bought my house...unfortuately this was before I found out about bigger pockets.
Since finding BP Ive been listening to the podcasts, read Brandon Turner's The Book on Rental Property Investing. And currently reading Scott Trench's Set for Life. I am realizing that my house was probably not the best to get started in investing...I bought it for $260,000 with a FHA loan in Louisville, KY. Mortage is $1600/m...and I have 2 roommates that pay $1,320 of it (so I am able to save more than when I was renting) BUT I could have made a MUCH better investment.
I'm not sure what I should do next and was hoping the BP fam could give me some input:
Should I just keep it for 5 years and then sell (I think I heard on bigger pockets that if you own a house for at least 5 years and lived there at least 2, you can sell it without paying taxes on capital gains).
The house is beautiful but only 3 bed/1 bath (all upstairs), main floor has all original hardwood flooring (living room, sunroom, formal dining and eat in kitchen) and the unfinshed basement has laundry, storage, and an emergency toilet (no walls surrounding it lol). Would it be wise to try to finish the basement and then sell?
Or just put it up for sale as-is and see what happens. (The previous owners wanted 290,000 for it...but I was able to purchase it for 260,000. It appraised for 263,500. Since Ive had it i put a new roof on it.) It is in a desirable neighborhood.
Or maybe just sit tight and keep saving by living frugally? Im currently saving $900/m but hope to increase that to 1000-1200 by not shopping at Whole Foods, ha.
Any ideas, thoughts, or advice would be much appreciated!