All Forum Posts by: Kelley Cock

Thanks, @Andrew Garcia. This confirms my thoughts. We need to find a property with some sort of distress … either needing rehab or bc sellers are distressed in order to have immediate equity for a HELOC to make sense. We really want to use the equity in our primary residence to fund the down payment so we may need to rethink strategy on what we want to purchase.

Looking for input on whether this financing idea makes sense. We have a primary residence and one STR which we've owned for a couple of years. We have about 350k in equity in our primary residence and are considering using some of that for a down payment on another STR. The areas we are interested in (Coastal North/South Carolina) don't have as many opportunities that fit the scenario of rehabbing for instant increase in equity. I'm not sure how this fits with our idea of using a HELOC to tap into the equity. We would obviously be shooting for a best case scenario but we're also purchasing based on this investment being a home we would eventually use half the year at some point so we have some specific needs as well.
Hopefully this question makes sense. I’ve learned so much from this forum in the past couple of years. 
Thanks,

Kelley  

Thank you all so much for your input.  It’s so helpful. @Wayne Brooksthat is an a important point of clarification for sure! This is exactly why I need to be asking questions. 

@Dave Foster my understanding is that if we chose to do the exchange, we would have 45 days in which to identify the exchange property and then 180 to close it? If we chose a property within the time limit and for some reason we weren’t able to close, can we choose another property and close it before the 180 day period is over? 

Thanks again for the help,

Kelley

We are very novice investors. We turned a primary home into a rental 8 years ago because we wanted a bigger home and didn't want to sell during a downturn in the market. We would now like to sell our rental and reinvest in a home in the mountains that we would use as a STR and a vacation place for our family. Our basis is pretty low since the marKet was so low when we converted it to a rental so we will, of course be looking at paying a boat load of capital gains.

Ideally, we would like to keep some cash back In the exchange and have less invested and Less mortgaged in this property. I’m a little unclear on exactly what has to be satisfied on a partial exchange. Can we finance less AND purchase a property that costs less thus having cash and less money in the new home? Or can we only choose one rule to not satisfy...for example, only keep cash back or only purchase for less than our current home sells etc. I know we pay taxes on any of the difference. 

If there is a better way to think about ending up with less "in" on the investment property, we're certainly open to ideas. We are so used to having what feels like guaranteed money each month from our LTR that we are managing fear of the unknown on the STR side.

Thanks so much for any advice. Like I said, we are as novice as you can get  and I have really appreciated the insane amount of information in these forums. 

Kelley