Should I Sell My Primary Residence?

Question

While surfing around Zillow, I noticed that the houses for sale (pre-owned and new construction) in my subdivision are selling for $10K-20K more than what I paid for my house.

In my area you can buy/build a home foe similar money as renting. We bought the house for $150K and the payoff is a little less than $140K. I have a background in engineering and survey and my wife has a background in architecture design. We picked the land and house plans with the intent on making the house more desirable than any other in the subdivision.

We've been in the house for 3 years now and I'm flirting with the idea of selling the house for a $15K or so profit and building a new house to live in then repeat.

The area I live in is under steady growth as the primary large city it is near has started to reach it's capacity. What are your thoughts about moving forward with this idea?

Matt Nusbaum · Answer

Hi @Nicholas Davis Does the 15k profit include closing costs/paying for an agent? What is your overall goal? Personally 15k would not be enough for me to want to deal with the hassle of moving. I think you're on the right track with moving/building a house to essentially flip every couple of years. That said, I think finding a run down house in a good neighborhood and renovating it would be a better strategy than building from the ground up each time.

Pavan Sandhu · Answer

get a 90$ HELOC on your primary residence then move out, rent it out, keep the assest and use your LOC for leverage on your next project.

Nicholas Davis · Answer

Matt,

I honestly haven't done all the math to include everything involved with the sale. I didn't want to get too into the weeds before getting a better idea of what I'm getting into.

What you're saying makes a ton of sense though.

By the way, how do you tag people like that aka @Nicholas Davis?