Need some advice for next steps
Hello,
I am a new investor and would love some input or advice on my next steps. Here is my current status:
I currently have mortgages on two properties in the Houston area (both in my personal name not my LLC). One is my current residence and one is a rental I bought. Both are valued between $160-$170k and I owe $135k on my residence and $113k on the rental. The rental has tenants and is cash flowing but nothing huge. I recently purchased a third property in WA under my LLC cash which I want to sell. I believe I will walk away with $150k-$200k for the sale of that. (I am selling because itnis a high maintenance and due to distance becoming a money pit). I am trying to find the best thing to do with the profits. So far I have come up with:
1. Take the profits from the WA sale and put into a 1031. Use the 1031 and the LLC to purchase my rental property outright. I will likely have some boot left over to pay taxes on. They use that and the rental income to pay my personal mortgage down to $0. Once both properties are free and clear buy a third and use all the income (my wife and I will still pay our regular mortgage amount) from all properties to pay down the third and so on.
2. Use the funds from the WA house to purchase more properties with mortgages.
I am 28 years old so time is on my side. I will be working my normal job for the foreseeable future as well. I feel like I am in a good spot but unsure of the best path or strategy to use from here. What would you do? Any tips, advice would be appreciated so I can capitalize on my hard work thus far.