Sell Ca Property to Buy TX Property

4 Replies

Hey BP,

I have a townhome (completely paid off) and a condo with about $200k in equity.  Both properties are worth about $550k.  Should I take the hit in expenses and buy much better cash flowing properties in Texas?  Rent on the townhouse is $2100 and the rent on the condo is $2300.  I obviously cash flow on the property thats paid off, I cash flow about $100 on the condo.  Please give me some advice.

Thanks

Yooch

You could also do a refinance on the fully paid one and a cash-out refinance or a HELOC on the other property. You do not have to sell your CA property in CA to buy one or more investment properties in TX.

@Yoochul C.

Do you have a long term goal or strategy?  If so, then ask yourself is this going to get me to that end goal?  You only do things with a purpose in mind.  A couple of questions to ask.  Why Texas?  Do you have family there? Are you planning to move there? Who's going to manage your properties?  What's the tax consequences when you sell your homes here?  Can you do a 1031 exchange?  What is the opportunity cost?  Will the cash flow be better than the higher equity appreciation that you will get from owning properties in CA?  These are some questions you should consider before you make a decision.

If it was me, I would personally just keep the properties you have because the market here is still very good. I believe the equity appreciation is going to make you more money than the cashflow from the properties in Texas.  But I don't know what your end goal is so, it's something you have to decide for yourself. 

Best of Luck.  Cheers!

John

Thanks guys. 

yeah my end goal is to have cash flowing properties.  I guess you're right about the CA appreciation may be way better than TX.  I guess i'll go the refi route and keep the properties. 

Yooch

Originally posted by @John Tu Nguyen :

@Yoochul Chong

Do you have a long term goal or strategy?  If so, then ask yourself is this going to get me to that end goal?  You only do things with a purpose in mind.  A couple of questions to ask.  Why Texas?  Do you have family there? Are you planning to move there? Who's going to manage your properties?  What's the tax consequences when you sell your homes here?  Can you do a 1031 exchange?  What is the opportunity cost?  Will the cash flow be better than the higher equity appreciation that you will get from owning properties in CA?  These are some questions you should consider before you make a decision.

If it was me, I would personally just keep the properties you have because the market here is still very good. I believe the equity appreciation is going to make you more money than the cashflow from the properties in Texas.  But I don't know what your end goal is so, it's something you have to decide for yourself. 

Best of Luck.  Cheers!

John

John,

Hey do you have any info on multi families in the corona area that could cash flow.  I'm interested in the 300-400K range.  I'd like to keep them 4 units or less to qualify for conventional financing.  Let me know.  I'd love to be in the standard 1% and 50% rules.

Thanks

Yooch

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