All Forum Posts by: John Tart

Sorry about that, not sure why I didn't put in the numbers.  Heres an update:

The townhouse I currently reside in is paid off.  Nothing owed on it, and I can sell it this week for around $160,000.  About 1200 Square feet.  If I rent it out, 3 bedroom 2.5 bath I can get around $1500 a month or a little more.

The property I currently am considering is a 2 acre tract, has a 3 bed 2 bath home thats right around 1000 sq ft.  Also has a mobile home on the lot that I may be able to repair and rent out as well.  My plan with that property would be to split the acreage and offer the other acre itself for sale.  I would then rehab the home and mobile home while living there and add a sunroom to up my square footage.  

That property is on the market for about 118,000 but I know I can get it for 100,000 cash, possibly less.(its not on the triangle MLS yet) It is in the Raleigh city limits so the acreage alone is what caught my interest.

The intention then would be to either a.)  sell the acre for whatever the going rate at the time is 50,000-60,000 b.)  Keep the home, rent it out along with the mobile home c.)  sell all three for much more than what I have invested at around 50,000 for the acre x2, 150,000 for the home, 50,000 for the mobile home.  For a $300,000 cash net.  ( I dont mind renting out units, I rented my home that I owned out during college to pay my tuition.)

The question is, would I be better suited selling the townhome at 160,000 to pay for the new property and have cash left over for construction and renovation OR  do I take out on the townhouse, hold it and charge around $1500 a month for rent and use that income to pay off both.

as far as 1031 I could do that, you mean selling and using the funds to defer all gains on taxes?

thanks for the help...thanks for LOCAL replies as well since you all know the market.

Im sorry I feel like that was a lot of information I just typed out.

I am new to Bigger Pockets but not necessarily new to Real Estate.  I'm relatively young (31) but have learned a lot from my Grandfather in terms of real estate before he passed away a few years back.  

I currently own a townhouse that has been paid off.  I am looking at a few properties now that I want to purchase to either flip, or rent.

My question is, would it be better to sell the townhome that I currently have and use that cash to invest in new property to flip and use for renovations/construction...or would I be better suited keeping the townhouse, renting it out and using the equity to take out money for other real estate investments.  I have a property in mind that I am looking to buy but don't have the cash to outright buy it.  I either plan to flip the property or rent it as well depending on the market when finished.

I came here with my question because you all have been there, done that.  Which is the better option?  Is there another option I am not aware of that can work?

Thanks!

-John in Raleigh, NC