All Forum Posts by: Kevin Kim

Hello 

I will purchase new primary home (some downpayment I will use $$ from bridge loan) and once I finish the purchase, I am planning to sell current primary home and to pay off bridge loan.

Location: East Bay, CA

Current Home Price: 1.1M (Mortgage left: $640,000, Equity: around $400,000 after closing)

New Home Price Target: 1.4M

Current Available Down paymet Cash: $200,000 

Bridge Loan Amount: $170,000 ~ 270,000 (For 20-30%down payment)

I am currently checking with mortgage lender(Wells Fargo) for Primary 30yr fixed mortgage (around3.0%) but haven't check bridge loan.

If I want to use bridge loan, does the primary lender (Wells Fargo) has option for bridge loan? Or I will need to check separate mortgage lender who is specialized bridge loan? Can someone advice if anyone has insight?

Thanks All for advice. The area is 1HR from SF/Bay area without traffic (with traffic up to 2hrs) and has excellent school. So renting out is not an issue I believe. I think I had to make decision but I lean toward to hold for long term (The rent will pay mortgage + escrow but not much positive cash flow as of now), and the home is quite new so i think i can hold for long term.

Hello 

I will be purchasing new primary home and keep my current primary home as rental or not due to the tax benefit.

Home location: East Bay, CA

Capital Gain: around $200,000 (Purchased 2018 and lived 3 yrs as primary home)

My original plan was once I purchase new home, I was going to keep it as rental. But once I learned capital gain exclusion rules ( up to $500,000 of that gain if you file a joint return with your spouse), I am confusing if I need to sell so I still get some tax benefits now or keep as it rental for 2-3yrs (can sell within 3yrs to meet the capital gain exclusion rules) or even hold even longer (pay long term gain tax in this case.)

I want to invest another investment property using 30yr fixed loan even if I sell now and I am kind of confuse what will be best direction here.

Can anyone advice if you have any insight?

Thanks Natalie. 

Thanks Ashish for your quick answer. To clarify, 

• You owned a home and used it as your main home during at least 2 of the last 5 years before the date of the sale.- Let's say, I will hold long (let's say I will hold 10 years. Then, 2018 - 2022 Feb (3YRS), It was owner occupied. Then another 7yrs, between 2022 - 2029, it will be rental. In this case, it was not primary home last 2 yrs when I sell 2029. Can you advice if I still get tax benefit at least some portion for when It was owner occupied between 2018 - 2022 Feb?

I own my primary home for 3yrs and will plan to buy new primary home and keep this current home as rental.

My plan is buy new primary home and keep this current home as rental.- In this case, when I sell my current home (will be rental in the future) how is calculated the capital gain tax? Currently the price gone up about (capital gain as of now, $200,000) and it is still below $500,000. Let's say, I convert the home to rental Feb 2022 then sell home 2027 (total capital gain is 500,000 for example when I sell 2027). When I sell 2027, Should I pay capital gain tax for entire 500,000 or pay partial capital gain tax (500,000 - 200,000= 300,000) for only when the home is being used rental (2022 Feb - 2027) 

Thanks All. I don't think there is any tax implication that cause the tax bill hole but i will double check. My concern was any HELOC regulation etc but it looks like there is not much on HELOC restriction.

Hello

I own primary home and am thinking buying new primary home soon. Once I close, new primary home, I will keep my current primary home as rental. (Location: East bay in CA)

Question here: To have some cash cushion for new closing (I have 20% downpayment but in case, I want to have some reserve), I am in middle of processing to have HELOC (as primary home HELOC, not investment HELOC) on my current primary home. Did anyone have similar situation that primary home is converted to investment property with HELOC opened? My plan is once I open HELOC, I will either use the money to buy another investment. And as long as I payback HELOC interest/balance monthly base, I don't need to report to Bank that my primary home is converted to Investment property? This is somewhat gray area that I am not sure what is the best approach here. Thank you in advance for your advice here.

Thanks Nicole for your insight.

Hello

I own primary home in CA , East bay and now I would like to buy another primary home and keep the current home as rental. I am not sure how soon I can get new primary home (I am trying to offer this week but will see how it goes) but in case, I would like to apply HELOC before I start new home loan process. Called one of local Meriwest Credit Union and asked if I should apply HELOC as Primary or Rental but answer was kind of Primary since it is Primary now. Then the agent says once it converted to rental near future, the loan officer can reduce the HELOC... Is it good practice to open HELOC when I received pre-approval letter form lenders for new Home purchase? I can have 20% down but want to open HELOC in case if I need some extra cash.