*Seeking Advice* CROSSROAD INVESTMENT DECISION
Hi,
Not sure how to start this so I'll just dive right into the details.
Information needed to know:
Property #1
- 3bd/2ba
- 1,376 sq/ft
- Priced around $370,000
Property #2
- 4 bd/2.5ba
- 1,512 sq/ft
- Purchased for $340,000
My parents were originally living in property #1 but property #2 is now my parents primary home. We purchased it for them by doing a 20% down payment using a HELOC on the first property. Throughout this slightly messy transaction, the plan was pretty much my wife and I would take over property #1 and my parents would get a new house, property #2. We were originally going to rent out the first property but soon realized that it wasn't a good investment so we are going to fix it up and flip it. So is here's the dilemma, once we do sell the first property. I will net at least $140,000, we hope we can get more after we do a little touch up. But I'll only be keeping about $80,000 as the rest will be going to my parents, since it was originally theirs.
With that $80,000, do I go and invest it somewhere else like a multifamily home and house hack it? My wife and I currently live in Portland, OR and want to move to Texas. Do we take that 80 grand and move down there and do a house hack or do I take that and pay off my HELOC.
Here is a quick breakdown of my HELOC:
- Still owe $60,000
- Interest is 5.5% - 14%
If I pay off my HELOC, this whole transaction would have been for nothing. I know it may have sounded stupid but we were told my a real estate agent that property #1 is in a great location so if we can rent it out and wait for appreciation, that would be great.
Any words of wisdom would be appreciated.
Thanks,
John