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Updated about 2 years ago,
Getting cold feet to sell former primary residence
Not sure if I posted in the right area.
So basically instead of seeing if I could qualify for a Heloc with no income except documented rental income over 2 years I decided to sell primary residence bought in 2017.Current interest rate is 2.625%.
Shortly after I listed, I realized I misunderstood the 2 of the last 5 years selling rule to avoid Capital gains and that I actually have another 2 years.
Cash flow after all expenses plus $542 monthly for Capex/Repairs/vacancy is almost $700. Rent by room model. Started as a house hacker.
Sale will realize in excess of $120K net. .
I remodeled it so things are in good shape, new HVAC etc. Already emptied house of awesome tenants.
I am keeping 2 other rental properties that cash flow over $3,000 combined which I use as job income replacement.
Now I'm not sure what I'll do with the proceeds from the sale as interest rate is crazy and I'm wanting to move away from current model to investing bigger and better with better returns. (I had no money left in the house as I had previously cash out refinanced all of it)
Am I overthinking? Should I try Figure for a Heloc and keep property?
How do you move away from the house-hacking mindset when you no longer need to do it but do not wish to buy a house to live in and pay to live in it. I'm currently hacking another place that costs me around $100 or less monthly but looking at purchasing something else in the coming months. We do use 3 beds/ 3 1/2 baths now which could all be rented if we bought another place.
Finally, I'm thinking, factoring cash flow, depreciation, mortgage paydown, offsetting taxes plus speculative appreciation: I would need to be getting at least a 20% cash on cash on my $120K to make it comparative to what I already have.
Side note
Investment properties have at least $200K equity with a 80% ltv. Should I sell the primary and try to pull funds here to deploy later?