Sell or rent current home ?

[Brandon Carrillo]

I have my single primary house that I've been living and flipping. I've been living in it for 2 years. Now I owe $137,000 and the appraisal appraised it for $240,000. That's $103,000 of equity. If I sell it, ill walk away with about $85,000 and I'll use that to get a 3-4 unit house. If I cash out refi (my mortgage will be $1,000) and rent it out, I'll get $40,000 and $300 cash flow. Assuming Rent will be $1,600-$1,700. Furthermore this is a conventional loan that I have now on my house. Wondering if I do rent it can I use the $40,000 to get a second house but with an FHA loan ? Idk if I can do that though? Any advice. Not sure what direction I should take

[Bill Ward]

@Brandon Carrillo run some numbers. Find a similar multi unit you’re interested in. If you sold and got the $85k, assuming that’s after taxes, what multi unit could you afford to buy, and what are expected rents vs mortgage. Compare that to if you only refinanced and had $40k and kept the first home.

Trying t maximize cash flow sounds like you wouldn’t want to sell anything as you’ll need to expand you’re portfolio. How much cash flow would you need to meet your needs of not working? Find that number to find out how many rentals you’d need.