Updated over 5 years ago on . Most recent reply
Selling house and don't know what to do with my equity
I am closing on selling my first home in Las Vegas in a week. My plan is to rent for a year and buy again. I have a roomate that will split rent and help me save money for a year.
In the mean time I will inquire about 15-19k from selling my house now.
I want to invest it back in real estate for when I buy another home with it but I don't know what I want to do. Whether I get a townhome or condo which is in my price range. But I want to invest my money and try to get in the game or renting out houses eventually.
What should I do with this fresh start of 19k for a newbie wanting to pursue building a portfolio and renting over time?
Any advice is welcomed!
Most Popular Reply
#3 1031 Exchanges Contributor
- Investor
- Las Vegas, NV
If you need the money in a year it’s going to sit in a bank and earn you about $15/month. Nobody can tell you the stock market will be up or down in 1 year. If you have any debt you could pay that off and then put the payments you would have made in to the bank.
Ps. Why are you waiting a year to buy your next house? Prices could easily go up $19k in the next year. Then it’s like you set that money on fire. If they go up 1% you’ll be worse off then buying now. (You’ll earn 1% on your $19k while your $200k+ purchase price also goes up 1%.) unless your 100% sure prices will be lower in a year you’ll be worse off than today.