I’m in a good spot but I really want to leverage it into a great one. I am relocating for work which comes with a nice relo package. Cash up front plus moving costs.
I also own my current home outright. It was my Grandparents and they passed it to me. I’m ready to move on and selling it is okay with me. I’m past the emotional attachment stage plus it needs some work.
I’ve got a few options and ideas. I’m curious to know what some people who are making money in real estate would do.
1. Sell the house outright. It should bring around $160k. Invest that directly into my next home which will likely be $475k. I’m moving to a much higher cost of living area so this is a nice boost to help us adjust.
2. Sell the home and carry the mortgage. I might get say $25k down and then carry the note for an undetermined amount of time. I do like the idea of making money on the interest.
3. Sell the house and use the proceeds plus cash on hand to help finance the purchase of a foreclosure. I’d have to use a private investor or hard money to make up the difference but I ought to be able to get into a nice home for a lot less.
4. Rent the home. It should being $850 a month but I’d need to spend some money to get it to pass all the CA requirements. Maybe $6k.
I’ve got good credit plus additional cash on hand.
I’m not risk averse but my wife is rather conservative but she loves fixer upper shows. Lol.
We are moving one way or another so something has to happen.
I could sure use tax write offs.
Curious to hear some thoughts or feedback.
BTW this iPad app could use some work...
@Ryan Reeves what are your goals?
You have a lot of options but need to lay out your goals well first before you make a decision.
It’s likely that I will be given the option to relocate again in the next 2-5 years and with that in mind my goal is to be in an even better position if and when that happens.
I guess that means I need to choose between additional equity or income.
I would sell outright and purchase a fixer upper to live in that will add equity when you sell again in 2-5 years.
If you can not add equity there is no point in buying another home to sell in 2-5 years. If the markets turn in the interim you will lose your shirt. If that were the case you would be better renting than buying. You would then invest in a cash flow multiplex as a long term hold and manage yourself till you transfer again then hire a PM.
Your best option would be to sell and invest in a multi unit to live in and fix up to increase equity till you move again. At that time you will have the option of selling or holding and having a PM take over the management.
I would definatly not be buying a 1/2M personal home if my desire was to invest.
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