Rental Property Investor · MA · Member since 2021 · 5 posts · 0 votes
Hello investors! I did a cash out refi on my primary residence and I have $35,000 to invest in. I was thinking of renting out my primary residence and try to get another single family or a multi. Any suggestions on what I should do with the $35,000 ? Thanks !
REI is a numbers game. Have you ran the numbers on the current property as a rental? Cash-flow is key. Without that it's a risky investment. Sometimes properties don't pencil out and cost you money every month. Market prices are sky high already so don't bank on more appreciation.
@Brandon Carrillo I would also consider taxation issues that could happen when you move out of your principle residence and turn it into a rental. How would this move look 5 years from now if you go to refinance the property again? If you decide to sell it would it be hit harder by the tax man if it were now viewed as a rental and not a primary residense? If you do a 1031 perhaps it won't matter. Just food for thought. Good luck.