I purchased a house in September of last year so I've been there for a little more than a year. I bought the house through a real estate auction that was held by hud. I won the bid at $75,235 and there wasnt much wrong with the house only a few minor repairs before it was move in ready. I am currently living in the house and I recently got it aprrasied for $135,000 so I would like to use the equity in the house to invest or maybe even rent the house out. Im new to the real estate game I'm only 22 but I would like some advice or tips on what to do.
I would do a cash-out refi and buy another one or move to another house and rent the one that you are living right now, as long as the numbers work out right. My rough guess, but if you can rent it for $1,000, I have a feeling you will cash-flow positive. If you are going to move-out, the lender may ask why you are moving out after only a year.
The lender will not ask about you moving out. People get transfers, divorced, a whim to move...it isn’t a problem after a year. In nearly all cases, buyers sign at closing a statement that they intend to occupy for at least a year.
What are your RE goals? If you're looking to scale your business and buy more properties, cash-out refi is an option. Another option would be to house hack and then buy another property. It all depends on what your goals are.
As a SFH expenses will definatly be in the 50% range so keep that in mind.
As a rough estimate calculate your debt repayment based on the property being 100% financed at it's full appraised value. Subtract that from the rent remaining after deducting the 50% expenses. This will give you a ball park estimate of the viability of renting as opposed to selling.
Obviously you will need to know your market rents.
If you can live there another 10 months then you won't get taxed on the profit when you sell. In the mean time you could do a refinance and buy another property.