Selling my primary residence

[Ben Gradert]

I am looking for advice on what I should do if I want to sell my home if I have not lived in it for 2 years yet. I live in Austin and the housing market is insane and I want to sell my home and move to a more affordable area and enjoy what the money could provide in terms of size in a different state. Should I convert the home into a investment property and 1031 it? 

[Ryan Kelly]

@Ben Gradert I wouldn't make it more complicated than it has to be. Simply do a cash-out refinance on the Austin home and take out what you need to go purchase a new home. Then keep your Austin home as a rental. When you do the refi, just make sure your new monthly expenses stay below what you could achieve with current rents and you'll have a nice cash-flow positive property in Austin AND tax-free money to go buy a new home. You'll have TWO properties in good markets! You can always do a 1031 exchange on the Austin property a few years down the line.