Hi Everyone! I figured I would reach out to the forums to ask for some advice/guidance of my next move into rentals.
Currently, I live in a Single Family that I've renovated pretty heavily the last year and a half. I bought the property with a conventional 5% down, 30 year term, @3.875% loan. Between renovations and crazy market appreciation I've gained considerable equity in the house. Also still currently paying PMI.
What I would like to do is purchase another Fixer after I reach 2 years in the house and Rent my current residence out after moving into the new property.
Does anyone have any insight on the best way to go about it? Should I Cash out Refi and use the money towards the new property? Depending on the new loan amount I’m pretty sure it would cash flow about 600$ with none of my money in. Does the 2 years of the last 5 capital gains tax relief rule get changed if I start renting out the property or Refi ? (I was thinking what would happen if for some reason I decided to sell the property in the near future after renting it out.) I also plan to pursue other rentals outside of the personal residence route.
Thanks for reading, looking forward to what everyone has to say.
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