SFH owner wanting to invest

[Erez Friedlander]

Hi,

I am owning a nice house currently worth 600K (clean from any mortgage or debt) and finally understood that sitting on this kind of asset is just a monthly waste of money.

As I am completely new to the real estate investment business, I am wondering whether it would be the right way to sell my current house and buy several assets for rental or keeping this and getting a loan/mortgage and buy, probably, fewer assets.

I am sure there are many answers to my question but I'd really appreciate to just get some kind of idea of what the right direction would be.

Thanks in advance for any replies  

[Robert Herrera]

@Erez Friedlander I would Refinance your current home if you can. This would make the money you receive a "Debt", and is TAX FREE. Loans are not considered income. If you get a personal loan for $5,000, you don't pay taxes on it, if this makes sense. If you get a loan for a car, you don't pay taxes on the loan you got, and if you get a loan on a house, you don't pay taxes on the loan. So what if the money goes into you pocket... you borrowed it, you still have to pay the Mortgage every month now. 

If you sell your house, you are looking at paying Capital Gains TAX. This will reduce the amount you receive. If you can't qualify for a good amount of loan, then maybe this is the way to go.