To Sell or Not to Sell? Looking for options...

Orlando, Florida
Buying & Selling Real Estate
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To Sell or Not to Sell? Looking for options...

Christopher Eduardo
Member since 2023 · 23 posts · 5 votes

Hi everyone,

Our current primary built a good amount of equity. Value 1.3-1.5M with a 496k mortgage with 3.675%. Also, have HELOC for 200k at 10%. I'm curious on what to do next. We only living here for 1 year so there will be some capital gains tax if we sell.

Do we sell now before market loses value? Take whatever cash we can take from it and build another house and possibly get an investment property?


Stay put another year to qualify for tax exemptions but risk the value going down and the unknown conditions a year from now?

Rent and put current home for rent (short term, mid term or long term) don't matter for at least the next year?

Really curious what you guy would do in our situation and or any other options you would do. Thanks a bunch.

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  • Marcus Auerbach
    Investor · Milwaukee - Mequon, WI · Member since 2010 · 5k+ posts · 7k+ votes
    2y

    There is no credible source projecting real estate prices to drop or even soften: we have a chonic housing shortage in the US. And even if prices were to soften, they are not going down as much as you would have to pay in taxes. And on top of that you will finance your new home at almost 8%, looking at a much higher monthly payment. Primary residences rarely make good rental properties - you will get it back worn out and that will cost you way more than the rent you got.

    I would look into strategies to buy a dedicated investment property.

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  • Christopher Eduardo
    OP
    Member since 2023 · 23 posts · 5 votes
    2y

    Thanks for your reply. Those are my thoughts exactly as far as what we will end up sacrificing if we sell our current home. Maybe look for an investment property is better via DSCR? That way, we can atleast live here for another year to not have to fork up paying taxes on the sale.

    Anyone can recommend good DSCR lenders with favorable terms?

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  • Raymond J. RodriguesBusiness Member
    Lender · Miami, FL · Member since 2017 · 1k+ posts · 797 votes
    2y

    @Christopher Eduardo, why would you use a DSCR loan instead of conventional? You should definitely weigh out your options to see what works best for you. I am happy to answer any questions you may have. Let's connect.

    [email protected]619-456-8311
    Helm Mortgage Corp.5123 Reviews
    WebsiteView Page
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