Needing help on a transaction!!!

[Alex Freelove]

Hello!

I purchased a home in 2017. I lived in it for two years and for the last year I have been renting it out as I moved to Hawaii. I am renting in Hawaii and would like to get out of that situation. I don’t have enough money for a conventional loan to purchase a home here but I’ve got about 90-100k in equity on my investment property.

I’m trying to decide what would be best in my situation.

1. Refinance my home to drop PMI and lower interest rate and continue renting in Hawaii.

2. Sell my investment property and do a 1031 exchange to purchase my primary home here in Hawaii (if I’m able to do that)

Any other options that would be good in my situation?

[Jon Crosby]

@Alex Freelove  Howdy neighbor (or used to be neighbor).  : ) 

I don't believe you can 1031 into your primary residence, unfortunately.  But if you lived in it for 2 years since 2017 then you shouldn't have to worry about capital gains anyway because there are no capital gains if you lived in 2 out of the last 5 years.  So, feel free to double check those facts, but if that is your situation then you can sell the investment property and purchase in Hawaii it sounds like. 

Best of luck to you! Aloha!