All Forum Posts by: Mark Crosby

Quote from @Mark Crosby:

Quote from @Samuel Diouf:

Hey Mark,

After paying taxes and management costs would you still cashflow? If yes, I would keep it. You can keep stacking equity as you mentioned, you only have a 1.875% rate. It also depends how aggressive you're looking to scale and how much time you want to dedicate to real estate. You could also leverage the property if you want to really scale fast with higher risk.

When you say leverage my property, do you mean taking out a second mortgage/HELOC?

Quote from @Samuel Diouf:

Hey Mark,

After paying taxes and management costs would you still cashflow? If yes, I would keep it. You can keep stacking equity as you mentioned, you only have a 1.875% rate. It also depends how aggressive you're looking to scale and how much time you want to dedicate to real estate. You could also leverage the property if you want to really scale fast with higher risk.

Quote from @Theresa Harris:

If you turn it into a rental and sell it in 5 years (having not lived in it for the last 2-3 years), you will have to pay capital gains on the profit.  You mention what it is worth now, but not what you paid for it.  Even if you bought it for $700k and sold it for $1.2M, how much would you pay in capital gains on the $500K?  Then look at what you'd make renting it out.

Thank you for your input Theresa. Regarding capital gains, if I sell it as my primary residence (didn’t rent it out), is it still subject to capital gains or only if I haven’t lived in it for three years? Also, as an example, if I sell it for $600,000 over purchase price but can show that I invested over $100,000 in improvements, can I add those improvements to the purchase price and to show that I made less than $500k on the sale and not be subject to capital gains? Thank you for help in understanding capital gains

I'm just getting into the real estate investor frame of mind. I'm moving from the house I've lived in for the past 8 years to another state. If I kept the home I'm in, it would be my first investment property. I have a VA loan option from when I was in the military I have not used and have the down payment I'd need for our next residence so I don't necessarily need to sell in order to buy my next house. I owe $412,000 on my home and could get $1.2-1.3M for it right now. I hesitate to get rid of it because I'm locked in at a 1.875% interest rate for a 15 year loan. It'll be paid off in 10 years. I'm considering keeping it to do short term rental and producing some cash flow while paying off the rest of the loan. My hesitation in keeping it is the huge property tax I pay every year about $18k. My goal is long term wealth. My regular job provides good cash flow and allows me to save up about $5-10k/mo after maxing out 401k. My goal is to buy one property/year for the next 10 years. But if I sold my house I could have around $800-900k in capital to put towards 3-4 properties. I'd like to have a diverse real estate portfolio (single family, du/tri/quad plexes and a small 8-10 unit multi family) and then see what I enjoy the most. What amount of cash flow per month would it be worth it to keep it? Or should I sell and jump start my real estate acquisitions?