Insight/advice needed for current situation

[Christopher Roome]

I’m brand new into the real estate game and have a question about my current situation, and also a question about an investing strategy. 

Due to life events I'm being forced to upgrade out of my townhome, which I currently own and have about a 135% ROI after I recoup my down payment. I have enough capital for roughly 15-25% down pending on cost. My dilemma is what to do with townhouse. I'm torn between renting it out for a monthly cash flow of a few hundred or selling and using the capital to purchase other properties. I have only a couple people in my life knowledgeable in real estate and none that I am really that close with.

I've been researching a lot into what niche I would like to start in and I keep coming back to purchasing bank owned properties on auction and re-listing slightly below value for a quick sell or minor repairs and quick sell. Would selling the townhouse and using the capital to start this venture be wise or should I use a HELOC on the townhouse while it's being rented out to help fund this venture and why?

Thanks to anyone in advance, I’m trying to learn as much as I can but I don’t have anyone to ask questions to!

-Chris

[Alecia Loveless]

@Christopher Roome If you can get the type of bank owned properties you are interested in locally or somewhere that you have a plan to build up a team to work with to do the renovations and get the properties ready for sale then I support the idea of selling the town home and taking the profit capital gains free and doing that.

If you have no plan in place then maybe you should rent it for 12 months while you develop your plan and build your team and then sell it after your lease expires because you’ll still be in the period where you’ve lived in it 2 of the last 5 years and won’t owe capital gains but will then be ready to move on with your investment plans.

You can also always put the money in a high yield savings account for now and then just withdraw it when you’re ready to buy.