Need Advise on Leveraging Existing Home to Purchase Another One
My boyfriend is a 100% disabled veteran who receives $6,500 per mo in benefits. We live in Alabama and he pays no property tax on his home here as a disabled vet. He owns his home here outright (value $350k). He has another $50k in assets and $325k in investments and no debt. We have found a lot on water in Georgia that we could probably get for $250k. The have a property tax break for veterans but it is not 100%. There is a cinder block structure on it now that is basically a 1BR, 1BA shell with plumbing fixtures, but no kitchen. We may be able to make it liveable for about $80-100k. So, he could sell his home and put 100% it into the new home. Or, he could rent his home and use the rental income from it to fund a mortgage on the new home. I don't know enough about the benfits of one or the other to advise him. I would appreciate input from the BP community as to the best way to approach this from a financial and tax perspective. Thank you!