How to sell current home to purchase house hack invesment

How to sell current home to purchase house hack invesment

Ann Arbor, MI · Member since 2008 · 90 posts · 20 votes

As the subject states, I have a dilemma that I am having a hard time navigating myself. I now own a SFH that is my primary residence, the first property I have ever bought, and I have owned it for about 30 months. My Realtor suggest that it comps at 22k-32k what I paid for it after improvements I've made. Essentially, I am looking at walking away with 15-25k after sale, enough for an FHA 203k loan down payment, closing costs, and reserves.

My frustration comes from my inability to figure out how best to proceed.  I can't just sell the house and be homeless while house shopping.  I have a bully breed type dog that will make renting very prohibitive, especially if I need a month to month lease.  I'd be moving and then moving again soon after.  

There is a house I am eyeing that is on the MLS, a couple guys basically part way through flipping, and a duplex that I can get for a 100k loan with repairs included that rents at $1500 to $1600. It cashflows at 100 conservatively and there is room to add value.

Do I make an offer contingent to the sale of my primary residence?  Why would they want to stay in contract with me while I wait to close?

Should I just move out, eat the costs of finding a place to live month to month?  That doesn't seem like the way to go.

I feel stuck.  I know there is a way to figure this out, I am sure there are many that have had their investments tangled up somehow in their primary residence.  Please help.

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  • Chris MasonPro Member
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    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    10y

    I think there are some zeroes missing from your home value, those numbers make no sense.

    Anywho,

    - Yup, you can make offers contingent upon sale of departing residence. It's a waste of your time in a hot market, but you can do it.

    - OR, if you don't need sale proceed money for the down payment, you can throw a tenant in your departing residence with a security deposit made to show the lender that it's a "real" tenant that is actually moving in as soon as you move out. Take the rent amount, multiply it by 75%, and make sure that number is higher than your departing residence PITI.

    - No law says that you can't sell a home with a tenant in it.

  • Ann Arbor, MI · Member since 2008 · 90 posts · 20 votes
    10y
    Hi Chris. Thanks very much for your reply. The numbers on the house is the amount higher the comp is based off original purchase price. Would you kindly further explain the situation of putting a tenant in my current primary residence? I don't think it would work well as a rental property based on location payments etc, and even if I disregard the down payment and closing cost for new property I still couldn't qualify for a FHA loan without selling the current property.
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