All Forum Posts by: Christian Weber

My situation

I own a home (homesteaded in FL) and have 2 roommates which help pay the bills.

numbers -

mortgage left 155k,

home value 330k,

current interest rate 4.125% on conventional with 24 yrs left on a 30 yr

monthly payment with HOA $1600 pcm

I am wanting to either

1) turn this primary residence into an LLC and purchase another property to move into and start the process again with the aim being to rent my current house out on an annual 12 month lease for at least 2 - 3 years as I was told that as long as I lived in it 2 out of 5 years I can then sell without paying capital gains (though this confused me and anyone wanting to teach this to me like im 5 years old would be greatly appreciated). Reason for the LLC is I have 180k of equity in this home plus a bunch of retirement savings in cash in my bank account and I want to make sure im protected if I rent it out and the renters sue me (im told that is a thing) - the new home would become my new homestead

2) Put a heloc on the home (im told I should be able to get about 100k on top of about 60-80k cash I have), keep it as my primary and use the money as a downpayment for flips and either payoff upon completion or put a tenant in and refinance out

3) Refinance out 90-100k from my current home, mortgage payment would go up $300 per month ($3600 a year) and just use that money for flips/buy and holds or even just stick in the S&P at an average of 7-8% return so I am making 3-4% more on my money then it being in the house

I am super new to all of this, have been saving my pennies up for awhile and need to get going.

Also will be working remotely so going to look towards Tennessee as a place to purchase as their is no state tax. I would keep FL as my residence state though, so out of state purchases would be investment properties.

Advice welcome especially in teach me like im 5 years old format

Thank you

So I am not the smartest person and some of the helpful replies in previous posts was above my mental capacity.

My situation

I own a home (homesteaded in FL) and have 2 roommates which help pay the bills.

numbers - 

mortgage left 155k, 

home value 330k, 

current interest rate 4.125% on conventional with 24 yrs left on a 30 yr

monthly payment with HOA $1600 pcm

I am wanting to either

1) turn this primary residence into an LLC and purchase another property to move into and start the process again with the aim being to rent my current house out on an annual 12 month lease for at least 2 - 3 years as I was told that as long as I lived in it 2 out of 5 years I can then sell without paying capital gains (though this confused me and anyone wanting to teach this to me like im 5 years old would be greatly appreciated). Reason for the LLC is I have 180k of equity in this home, additional 150k in retirement savings and another 60-80k in cash in my bank account and I want to make sure im protected if I rent it out and the renters sue me (im told that is a thing) - the nw home would become my new homestead

2) Put a heloc on the home (im told I should be able to get about 100k on top of about 60-80k cash I have), keep it as my primary and use the money as a downpayment for flips and either payoff upon completion or put a tenant in and refinance out

3) Refinance out 90-100k from my current home, mortgage payment would go up $300 per month ($3600 a year) and just use that money for flips/buy and holds or even just stick in the S&P at an average of 7-8% return so I am making 3-4% more on my money then it being in the house

I am super new to all of this, have been saving my pennies up for awhile and need to get going. 

Also will be working remotely so going to look towards Tennessee as a place to purchase as their is no state tax

Advice welcome especially in teach me like im 5 years old format

Thank you

I appreciate your reply - only debt I have is a $350 a month car payment, I will most likely keep the home for another year or two then turn it into a rental for 3 years and then sell before the capital gains monkey catches me (2 out of 5 years  I think) So it would make sense I think 

My emergency fund is solid as my rent is covered mostly by roommates and having 60k just sitting in a .5% interest account is secure enough to last me 3-6 months (truth be told 20-30k is more than enough, I live really low)

Firstly hello - long time reader and first time poster 

Some advice needed

I have 155k (24 yrs) left on Primary mortgage at 4.1% (home worth 320-350k)

If I cash out refi I potentially can take up to 100k out / drop interest rate to high 2's/vry low 3's and have a payment $200 up on my current monthly

I will make around 160-200k USD this year from my jobs (more if I buy a rental) and my mortgage is within $100 a month paid off by roommates (I cover the utilities which are $300USD a month)

Question is with money being really cheap would it make sense to cash out 100k to have it and either stick it in the s&P500 or use it for DP on 2 or 3 investment properties?

I was considering doing a heloc and using it to flip some houses but my business partner went potty and cant rely on him anymore. I currently have about 60k in an emergency fund as well

All input appreciated

I also dont mind holding until this eviction thing passes and some homes might hit the market in sept/octo however it takes a month to cash out refi