All Forum Posts by: Shea Prior
Shea Prior has started 1 posts and replied 3 times.
Post: Sell or Heloc and long term rent
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Thank you all for the good input!
Yes, I have lived in the house since I purchased it in 2018, up until February this year, so that would be awesome about the capital gains tax.
I'll be doing some deeper dives on rental comps in the area, and I may ultimately decide that I need to come down a little in the rent. As Sebastian said, 0 cash flow still has benefits, and even dropping the price a hundred bucks would cash flow. And also as Dan pointed out vacancy adds up quick.
Post: Sell or Heloc and long term rent
- Posts 3
- Votes 0
I've thought about doing a refi. But then I'll lose my 4.75% interest rate, and with the fact that I'm already having trouble finding a tenant, it would make my costs go up/cash flow go down. I just don't think that's a good idea in my situation.
Post: Sell or Heloc and long term rent
- Posts 3
- Votes 0
Hi I'm Shea. I am trying to get started on my path to financial freedom and I need some advice. I have a home that I purchased USDA back in 2018 as my primary residence. Since then I've gotten engaged and we have purchased a new house that we live in back in February this year. I feel like I've made a lot of good first steps here by creating an LLC, putting in a little elbow grease to get the property rent ready, and listed it for rent on Facebook and all the usual suspects. I have had it listed since August 30th and have had several people interested, and one perspective tenant actually put in an application but ultimately decided not to commit to signing the lease. I am wondering if I need to sell the house and do a 1031 exchange to capture all the equity that has been built up over the past 7 years, and perhaps invest in a different market that I might be able to get a long term tenant into a property quicker for cash flow. Or should I keep looking for a tenant here but maybe lower the rent by $50 or $100, and seek out a HELOC to capture the equity that way. The ultimate goal is to try to look for a second investment property, and use the equity in this house as my jumping off point. I am currently covering monthly holding costs with my day job, which is manageable, but obviously it's not something I would like to do long-term. As it stands I have about $82k in equity in the house so there's potential there. Am I just being impatient? Should I lower my monthly rent? I know it's a buyer's market right now, but should I sell and try to just purchase a property in a more desirable area? Ideas/advice is appreciated