I also though people would be more helpful and such, but that is not really the case for me and have decided to go back to my original plan of just simply going through the banks and getting experience before I cold call again and door knock.

The calculation involves:Selling Price: $1,075,000Original Purchase Price: $355,000Depreciation Recapture: $105,300 (taxed at 25%)Capital Gains: Sale price minus original cost, minus depreciation, minus selling costs (~15-20% federal capital gains rate for their income bracket).State Taxes: Since the property is in California, state capital gains taxes will also apply.Given the multiple layers, I’d highly recommend your parents work with both a CPA experienced in real estate and a qualified intermediary for the 1031 if they choose that route.If you need recommendations for professionals in Illinois or California, feel free to ask!

The original intention was to do a light cosmetic rehab and rent it out.

Originally posted by @Trevor Fleck:@Eddie Lozada check out Rent to Retirement.

Great area to buy in, house was all original 1978 brick ranch.

For example, if your house is valued at $400,000 and you only owe $200,000 on your mortgage, your equity would be $200,000.Why Equity Is Such a Big Deal for Homeowners Looking To SellRecent data from the Census and ATTOM shows how significant today’s home equity really is.

Originally posted by @Thomas S.

Its just hard and if there is any softening of the market.For the original investor:1.

My suggestion to consult your accountant or tax prepared referring to points which also know as loan origination fee and interest rate how this will affect and will this be an advantage for your business?

It is also important to consider the transactional fees associated with originating the HELOC, whether an appraisal is required etc.