All Forum Posts by: Gregory Saysset

 Thanks, this is really the way I look at it and our plan for the next 10 years, thanks.

I currently own my home in California and purchased our first rental property in Alabama a couple of months ago.

We are planning on leaving California in July of 2024 as the cost of leaving here is getting crazy and moving to Charlotte, North Carolina. We have a long-term goal of investing in real estate to set up our retirement.

We were able to buy our house on the down market in 2010, we owe about 310k at 3.8% and could sell it for the low 800k.

My dilemma is should I sell or rent my house in California

Renting will give us a $800 to $1000 cash flow, but California being a tenant state worries me.

But on the other hand, selling will give us way more freedom and buying power, and it will accelerate our plan like crazy but I want to make sure I’m not missing something and making a mistake.

The current plan is to sell the house here in California makes a 400/450k profit which should not be taxable as we are married and have lived in the house for the past 13 years. Move and rent in Charlotte for 6 months to see and analyze the market and the area. Once there, accelerate the machine, buy another 1 or 2 investment properties in the next year and a house where we will live for a year or two to renovate, then rent it and buy another one.

Do you think the plan is appropriate or do you think I should reconsider keeping the house and renting it?

I will have to agree with Joe Villeneuve, selling the house will give you way more leverage. Let's say you sell your house for 200k, you could save 40k as security and put 40k on 4 down payments for 4 houses (live in one and rent the other 3). Don't do that overnight, do your research, and build a team to help you, but in the end, instead of having a 200k asset with your paid-off home, you have an 800k asset with those 4 houses and a 40k security pillow.

if you really want to keep the house you have to find a way to keep money for the next down payment.

One thing you could do, if you go in that direction is each month save the same amount of money it will cost you to pay rent since you don't have any as your house is paid out. That might mean sitting down and restructuring your budget. But let's say renting a house costs 1500 a month, that is 18k a year that could go toward a down payment. 

by the way, you usually don't need to set aside 6 months of the new mortgage in order to qualify. It is the smart thing to do but it is not required.

I agree with Chris Seveney, but if I could add to that. 

If it was my rental, I would also do the same and keep the extra money, I will keep 3 to 6 months of property expenses (including Loan/tax/insurance) and once there, I will keep the money to invest in your next down payment. I will recommend doing a long-term plan and investing that money. Let's say you want to get to 5 properties, each time I will do the same save for those 3 to 6 months' expenses backup and again save for the next house. I will consider paying off the loan once I get to those 5 houses using the debt snowball. 

Thank You all for your advices,  I have talk to a great agent and all see your point. And instead of focussing on selling a house I can actually focus on investing the profit from the house.

I'm a new investor, I own the house I live in California, and just bought my first investment property in the midwest. I'm thinking of selling my house in California to move to the east coast and invest there with the money I make on that house. 

If I sell the house, should I hire an agent and go through the usual process, or sell it myself and save the 50K that I will pay for agent commission? 

Should I even consider passing my real estate license since it will only be in 8 to 10 month from now?