05-15-2022, 07:56 PM
Buying 2nd home - rent or sell 1st home?
<!-- SC_OFF --><div class="md"><p>My wife and I have a home close to downtown Austin tx we bought for $600k three years ago and could likely sell it for $350k profit, or rent for about break even cash flow today. </p> <p>We’re looking to buy a long term (maybe forever) home where we can raise kids. We have been trying to stay under $1.5M, but are seeing we may need to go as high as $1.7M to get the home we really want in Austin. </p> <p>-Our income varies as we’re both in sales - $400-$600k/year -currently hold $270k cash -have $750k in 401k and non-retirement brokerage accounts. Can borrow $200k+ on a credit line if need be to help with down payment/closing cost </p> <p>Long term we want to diversify into SFH rentals since we have so much tied up in equities so renting our 1st home makes a lot of sense. At the same time, it could make a lot of sense to sell our 1st home since the housing market exploded recently and we would not need to pay taxes on the gains. We could use the money to help with the down payment instead for taking out a line of credit, invest in equities since they’ve taken such a hit, and invest in real estate </p> <p>Are we nuts to sell an amazing rental home in a hot market like Austin?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Bogaboard88"> /u/Bogaboard88 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/uq67cl/buying_2nd_home_rent_or_sell_1st_home/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/uq67cl/buying_2nd_home_rent_or_sell_1st_home/">[comments]</a></span>
<!-- SC_OFF --><div class="md"><p>My wife and I have a home close to downtown Austin tx we bought for $600k three years ago and could likely sell it for $350k profit, or rent for about break even cash flow today. </p> <p>We’re looking to buy a long term (maybe forever) home where we can raise kids. We have been trying to stay under $1.5M, but are seeing we may need to go as high as $1.7M to get the home we really want in Austin. </p> <p>-Our income varies as we’re both in sales - $400-$600k/year -currently hold $270k cash -have $750k in 401k and non-retirement brokerage accounts. Can borrow $200k+ on a credit line if need be to help with down payment/closing cost </p> <p>Long term we want to diversify into SFH rentals since we have so much tied up in equities so renting our 1st home makes a lot of sense. At the same time, it could make a lot of sense to sell our 1st home since the housing market exploded recently and we would not need to pay taxes on the gains. We could use the money to help with the down payment instead for taking out a line of credit, invest in equities since they’ve taken such a hit, and invest in real estate </p> <p>Are we nuts to sell an amazing rental home in a hot market like Austin?</p> </div><!-- SC_ON --> submitted by <a href="https://www.reddit.com/user/Bogaboard88"> /u/Bogaboard88 </a> <br/> <span><a href="https://www.reddit.com/r/investing/comments/uq67cl/buying_2nd_home_rent_or_sell_1st_home/">[link]</a></span> <span><a href="https://www.reddit.com/r/investing/comments/uq67cl/buying_2nd_home_rent_or_sell_1st_home/">[comments]</a></span>