What would you do if your home quadrupled in value?
In 2005, we bought our home for $420,000 (Richmond BC).
In 2016, we had an offer from a developer for $1.25M which we turned down because it was too sudden and we were buying our second income property. With that amount, we would have had to downsize to a townhouse in the came city.
Now, a land assembly agent thinks that we could get $1.65M based on the current market for redevelopment to townhouses. Since we have been thinking about this for the past 2 years, and have a total of 4 income properties, we are in a better place to sell and relocate somewhere more affordable. Cash flow on our income properties is low so there isn't enough to support us. After paying off our home mortgage and HELOC, we will be left with $1.45M.
Would you:
A. Move, Buy your dream house (on Vancouver Island- Nanaimo) for ~$1.5M ocean front and with a detached mortgage helper and continue working.
B. Move, Buy a live-in flip ($500,000) and invest the rest on the right deal, examples?
C. Buy a duplex ($500,000) outright that would rent for $4000/month and buy something close to the dream home with a mortgage, and use the income from the duplex to pay down the mortgage (yes this is less than the 1% rule but that is my market).
There are many other options so feel free to share your thoughts. Large MF properties aren't readily available in the current market at fair prices. Cap rates are low because land value is at a premium.
I did just finish podcast 250 with Grant Cardone and am not interested in throwing away money in rent, or scaling up to multimillion dollar properties.
Remember I am Canadian- so our dollar is worth less that the USD.
Thanks in advance!