All Forum Posts by: Karen O.

Brilliant.  Congrats.

@Dave Van Horn has done a lot of blogging on the subject here at BP.  He had a book published recently too.  Might be worth checking out. 

@Dave Van Horn  

Did you try Bargain Outlet in East Hartford CT?  It's about 20 min from you.

I was offered a 75% portfolio mtge - not heloc - from Quicken Loans 2 yrs ago.  However, my house value was significantly less than $600k. Might be worth the call.  Though, from all you've written, I'd still sell, get the cap gain exclusion and invest elsewhere.

All of this is irrelevant if you want or planned to go back to the home someday. If not, I'd take the cash.  If you take out more debt it'll cut into your cash flow maybe requiring you to fund the difference each month.  If you could get a heloc for $200k or refi cash out for $480k (80% ltv) at a similar rate, your payments rise $900-$1000/mo.  That would eat into your cash flow if you can't raise the rent and leave $120k in equity still in the property. The exclusion is now, doesn't occur all the time, allows you to lock in your gain and can be reinvested into cash flowing options equal to or better than you currently have.  A 1031 may be an option, but you'd have to adhere to the timing issues.  Whereas, if you sell, you could take your time finding the right next investment.

Final price at auction, depends on the type of auction (tax lien auction, bank auction, bankruptcy auction, etc) and the amount someone is willing to pay to own/control the property.  

If the #s didn't work for you, and you stuck to your criteria, don't second guess yourself.  Move on.  Another opportunity will come along.  And maybe you should find a new "mentor".  

You've listed many roadblocks.

If I were you, I'd: 

#1 use a portion to fund my emergency fund (if I didn't have one); 

#2 payoff as much of my high interest, non income producing debt as I could since the cost of that debt wrecks havoc on current income. The reduction in monthly debt payments will help the income dollars stretch further;

#3 take my time, but invest whatever is left in something I understand that doesn't keep me awake at night.