All Forum Posts by: Account Closed

Interesting, I see your point more clearly now, @Nazz Wang 

You make some great points and ultimately it will come down to risk tolerance.

Property Taxes:

County - $1927

City - $206

Insurance (OO): $958

Interest Rate: 3.875

Thank you for sharing, @Dawn Anastasi 

I really appreciate the feedback!

Wow, could not be happier with my first post. I greatly appreciate the responses.

The OO multi-unit is a great thought, @Jean Bolger  but as @Bill Exeter suggests, life circumstances factor in as well and I don't think that is in the cards for me. 

My current primary is only 1.5yrs old, @Nazz Wang and my current monthly payment is $1,175. While I do think we could rent for around $1500, that will not be positive cashflow when factoring in the 50% rule. Plus, with a purchase price of 190k, the 2% rule would dictate rent of $3800, which I think is unreasonable. For selling, waiting until after 12/31 to close is beautiful advice. 

Capital gains is something I have been confused about. I was told that since we haven't lived in the home over 2 years that we would have to pay CG on any amount we sell over the our original purchase price (less expenses). Since our CG would be well under 500k, we would be tax free?

Thank you all! :)

Hello everyone! This is my first post to the forum now that I am finally a member (I've just been stalking the site for quite some time now). I am 26 and really excited about starting my journey in real estate investing. Here is the situation:

I currently own no (money making) assets, and the only debt I have is a 15yr mortgage (balance of 110k) and a 5yr auto loan (12k balance). My home is worth 190k so I have 80k in equity. 

I want to free up cash to use for purchasing my first rental (strategy: buy/hold - niche: SFR or MF). In your opinion should I:

1) Cash-out refinance - free up the equity and move to a 30yr to minimize money going into liabilities, maximize money going into assets (Kiyosaki).

2) HELOC

3) Sell my home, buy a home half the cost and use the difference to invest? 

I'm leaning toward the third option because I could really keep my mortgage payment low while freeing up the cash. My wife is on-board to downsize as well, so bases are covered!

Thoughts? Is there anything else I should move around or ways I could prepare my personal finances before I make my first purchase? THANK YOU :)