Updated over 5 years ago on . Most recent reply
If i buy a new house should I sell my residence or rent it out?
My house is paid off. It has a HELOC used for real estate investing. I've been in it for more than 10 yrs, and I recently learned that if I lived in it for 2 years I can sell it and have zero taxes on the capital gain. I'm a buy and hold investor so keeping it makes sense but passing up on selling with no tax consequence also makes sense. Also, I would have approximately $300k from the sale. In terms of opportunity, I could keep the house and expect $2000/mo rent or I could sell it and use the $300k as a deposit on a $1M multifamily commercial property, which would probably have $6000-$10000/mo rents. The latter sounds pretty good to me. I don't have a particular MF property in mind; but I am looking at a new house to move to. Any thoughts, advice, resources? Thank you
Most Popular Reply
@Jon S. This sounds like a good problem to have. I would say if you’re not looking for the multi-unit, I would rent your primary residence out and continue to receive the cash flow. You own your home free and clear so you have the option of using the equity in your house without selling it.
Cory