Hi, I’m am in my twenties and have taken a big interest in real estate investing. Currently, I am learning as much as possible and closing on a one family home with a current renter. 30 year 25% down. My father and I are going in the deal together more as a learning experience and to get our feet wet.
Aside from that, I live in a separate home that I purchased 10 months ago with a fha loan. Since not much was put down on the house I currently only have about 8% equity in the home.
If i were to move to another state, would it be smarter to
1) sell my home (worried I would end up owing money or a wash at best when paying selling costs)
2) rent the home (worried about not having enough equity in the home to count the rent as income when applying for a new home mortgage)
3) look into a wrap mortgage or seller financing (most appealing in my mind being able to get a deposit up front and charge interest to the buyer. However somewhat worried about not being able to claim the income as with renting, and also risks associated with wrap mortgages)
My long term plan is to acquire as much passive income as possible through real estate. That combined with not profiting from selling the home have me leaning toward options 2 and 3.
I have read if you are relocated to another state for work you could be elligible for a second fha loan.
When moving to the other state i would be looking to rent or do another fha loan as I don’t have the resources to put much down on a new house.
If you’ve made it this far, thank you for reading! If you were in my shoes, would you choose one of these three options or would something else be a better option? Thanks in advance!
