Matt from CA,
Thanks for your advice, That is a good point that equity is a long term play that ties into appreciation. I've been trying to talk to a financial advisor but when I called the bank that use, they tried to force me to pursue the loan through them. So, it's safe to say I cannot trust the advice of my bank who would stand to make money either way if I use them for my loan. Should I talk to a CPA? Or is there any other professionals I might be able to meet with in person that won't have a vested interest in making money off of this deal either way?
To answer your question about if I plan to use appreciation to acquire more property or 1031.. I would say, yes, ideally I would like to invest in more property down the road that could give us a higher cash flow.
And 1031, I'm not sure what that stands for, if you mean just sell it to use the money as a DP on another investment, it's something I also considered. We do have a bit of debt I would like to pay off too. But maybe it makes more sense to pay the debt slowly and just invest in more rentals long term?
Great points, thank you! I was thinking of trying to do repairs myself to save money.
And I had not considered state tax for OOS investments at all. That is a great point to consider coupled with the added property manager expense.
Thank you! On investing somewhere else, I will have to do some research. But the money we have available to invest would just be our down payment from our heloc. If anyone has any specific recommendations, I'm open to listen. We were hoping for a bit of cash flow to help with me having had to quit my job to stay home with our little one. But if we can only get cash flow with high risk, maybe not worth it.
Thanks for your response, we are making it but probably couldn't weather too many months of negative cash flow. I mean, we could for a bit but I'm not sure if it would be worth it or worth more debt accruing.
Thanks for your input too. It's hard making this decision when getting advice only from the bank or agent who will make money on it either way.
It's nice to hear from professionals in the business, especially that know the washington state market too.
Thank you all, sorry if I missed a response. Would love to hear any additional points or advice.