Sell or Rent in Los Angeles to buy in Vegas

[Giancarlo Caceres]

I own a property in Los Angeles valued at $680K, mortgage balance is 400K (plus HELOC $40K)

I moved to Las Vegas earlier this year, my family currently occupies the house but they will be moving next year and we need to make a decision.

I am not sure if we should sell the house in LA and use this money to buy property here in Vegas (currently rent) or if we should keep the property and rent it. Current mortage payment is $2,750 plus HELOC $3250 and the property will rent at about $3,500.

We definitely want to buy property in Vegas, another option to finance this purchase will be by selling another property that my family owns out of the country for $100k (produces about $500 monthly rent).

My goal here in Vegas is to buy a $250K primary home and a rental property for long time investment.

I would appreciate any advise or new ideas.

Thank you

[Bill B.]

100% take the 200k tax free if you’ve used it as your primary. 

If you use it as a rental you get to deal with California landlord laws and get taxes by the state and the federal government on that gain when you sell.

If you want to go slow you can almost pay for your primary in cash with $200k down. If you want to dive in, buy 2 x $250-$300k sfh with 100k down each. (One primary 1 rental or two rentals if you want to stay out, but you’ll pay higher rates for rentals.)

$175k loan at 4% is less than $850/mo. Add $150-$200 for taxes, $50 for insurance and you’re around $1100. pry less than you’re paying in rent and certainly less than you can charge.