Cash out equity vs cash flow

[Brian Rudd]

Hey everyone I've been running the numbers and stewing about this just want to see what the opinions are on here.

Situation:

I have a primary residence that can be sold for $350k to $400, 000k profit, with  250k tax free

PITI :$1100/mo

Gross Rents: $2800-3200/mo

_______

Finishing a duplex build rn that will be able to be moved into next month. Planning to house hack. The basement unit will cover the note of the duplex. ~$2000/mo

OPTIONS:

A. Rent current primary, rent basement, cash flow for at least one year then reassess possible sale of duplex to avoid short-term capital gains and get my feet under me as a first-time landlord.

B. Sell primary, reinvest the proceeds into a commercial property/index funds. House hack duplex. 

C. House hack duplex, rent primary, takeout HELOC or Cash out refinance to fund further investments.

What would you do??

[Mike Dymski]

Whatever you do, don't lose the tax free gain on sale if you rent for three years.  At a minimum, sell prior to three years and buy an identical house.