Next Steps After First House Hack

[Corey Perkins]

Hey everyone! 16 months ago I bought my first property. It was with my money and my mom's credit as a co-signer. Purchased for $190k in Middle Tennessee and now worth around $270k. I've lived in one bedroom (sun room) and rented out the other 3 to teammates on my college baseball team. I'm 23 now and in my last year of baseball, so considering selling late summer/early fall. Bring in $1,227/month for rent and my mortgage is $1,097. I have a free place to live with my parents if I do decide to sell.

What are my options going forward and what are your opinions on those options? Many of y'all have a wealth of experience and knowledge, and I would greatly appreciate your feedback. Also, I avoid short term capital gains tax after living in the property for 2 years, correct? 

Thank you!

[John Leake]

I think the house hack is such a powerful tool so I would be tempted to keep that trend alive! If you are planning to move can you use the equity you've built and purchase a small multifamily? You could also purchase it solely as an investment property but the lending is much better for a personal purchase. That lending would stay in place in most cases, even if you move! If it was me I would look for a BRRR in a 3-4 unit. If you can afford to do it all in cash that's best, then you can refinance your down payment out. If you cant you may be able to get a rehab loan and accomplish getting an investment property with equity built in that was as well.