Hello everyone,Thanks in advance for viewing my post and for your advice.
A bit about myself and why I signed up at this website:
I am in my mid-50's and ready for a change.I am fed up with the Rat Race and my (yuk)
job in the Bay Area and have a plan,but need advice getting from point A to point B.
My situation,I own home in the East Bay and want to sell and buy something out of state
for a fraction of what a home would cost in the Bay Area.
I am interested in early retirement,I have earned it and deserve it,but that's another story.
I figure after the sale of my Bay Area home,I should clear around 425k.
But I ask myself,if I find a small home for around 265k,should I pay it off with cash
OR have a mortgage payment and invest my profit after sale in the rental market
which I know nothing about.
The house was an inheritance and I know very little about Capital Gains,only that
I could write off the money I invested in the property after the inheritance against
the Capital Gains taxes and would owe practically nothing.
In the bigger picture,my question is,"How Can I turn the sale of my High Priced
Bay Area Home into a Win-Win Real Estate Investment strategy?"
Thank you all for your advice and May God Bless you,
Hello Stefan welcome to real estate investing.
You asked "How Can I turn the sale of my High Priced Bay Area Home into a Win-Win Real Estate Investment strategy?" Educated yourself, first and foremost. Before you sale or purchase any property take a real estate investing course.
Opinion and tips are great but they are based on what normally worked for that investor, and that is great, because you can learn a lot, but not in an organized way like a course.
That is my humble advise. I wish you much success.
Welcome to Bigger Pockets.
Welcome to BP. The short answer is it depends on your goals and lifestyle.
A mortgage on a $265k property will be very minimal when leveraged out. Could you offset that mortgage by using the bulk of your current property's capital gains to buy a cash flowing investment? It's possible - depending on where you invest.
Lots of unanswered questions though: It sounds like you're done with the job you're currently in but, in general, are you planning on working when you relocate? If not, how will you pay for your everyday living expenses? More specifically, do you know where you'd like to relocate to? Do you know how much money you'll need on a monthly basis when you relocate?
Personally, when selling a house for a client, I make sure to ask all these questions to get down to the true motivation behind selling. That helps the plan fall into place.
All things considered, the act of selling and relocating is the easy part. It's determining what you want/need next that will and should take some deeper thought.
Feel free to reach out if you have any questions and I wish you good luck.
Welcome to BP, and congratulations on making the decision to invest in your future via real estate.
I have written a few blog posts that may help you get started here on BP, and with your investing. Please click on the links, give them a read, and share your thoughts in the comments.
First is a post that I feel will help not get overwhelmed with the amount of info that is here on BP:
The second is a post that will help get you focused with your real estate investing goals:
The last one is a post that will help you choose an “investor friendly” real estate agent. There are many agents out there, but it’s important to choose the right one.
I have other blogs that may be helpful here on BP in my personal blog that you can check out. Good Luck :)
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