Updated about 9 hours ago on .
First Post: Thoughts Renting vs. Selling
Hey BP community! I have recently come across the Book on Rental Property Investing and have very much enjoyed it. I have been planning to get into investing in rental properties for some time now.
Now that I am taking action I wanted to run a scenario by you.
I purchased a home in 2020 two weeks before everything shut down. Got an amazing rate under 3%. Also have built some incredible equity in the last 6 years.
That said, the home I purchased is a larger SFH and I am not sure that it will fit into the portfolio I plan on building. Granted, I am new to all of this, so my ideal portfolio may change in time. But I have two scenarios I am considering.
1. Sell the current home and take advantage of the equity. Then immediately purchase a home that is a better rental property as far as location and size goes. (Lower maintenance cost etc). Live in the new home a couple of years while I study up more on rental investing and then start targeting a second purchase in the next two years. Move into the new home and rent the old. Then rinse and repeat.
2. Rent the current home and utilize a heloc for the down payment on the next home. Purchase a second home and live in it for a couple of years while planning a third purchase. Including the heloc, the current home would be netting around $350/month in positive cashflow after renting it.
The questions I have:
Have you ever done this and how did it work out for you? For those with experience, do you feel this is a good plan? Finally, are there other options I am not currently thinking about yet?
Thank you so much for your time and response.
Have a great day!