Selling the home you live in for profit

[Bryan Strain]

So my girlfriend and I bought a house back in 2020 right when the Covid shut downs began. We were able to secure an FHA loan for 162,000. The house was on the market for 149,900, after negotiations we were able to purchase the house for 152,000. Today, the estimate for the house has gone up 40,000$ and that's without any of the updates we've done so far. We obviously live in this home, but my goal is to take the profits from this house, purchase a slightly bigger house and then take the remaining money left and purchase a rental property. When going about selling the house with the loan still attached, anything after 162,000(the loan cost) would be a profit correct? So say we sell the house for 210,000$, would that be a 50,000$ capital gain? I have some money saved up right now to where I could purchase a rental property now, do you think it would be better to wait and see what happens with the house? Thanks for the help!

[Scott E.]

You're not considering commissions and closing costs. If you sell for $210,000 and your 1st mortgage is $162,000... you will walk with ~$32,400 in profit when you sell.