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I've spoken at the summit on house hacking where I bought a duplex when I was 20 and created the opportunity to live for free. For context to this question, my goal is to build a holdings company that invest primarily in multi-family real estate and create my ideal life from that.
Now im kind of at a cross roads. I bought that duplex when I was 20 (2 years ago) for $157,000 (currently owe ~145k). As of today there are duplexes that are the same or worse than mine in my market being sold for $260-280k and they're going in less than a couple of days (absolute insanity). Prior to finding my newest property i never considered selling because I needed the place to live. But now after seeing these prices come up and I now have a new place the live the opportunity to sell the property has presented itself.
I've lived in the property for 2 years, I could sell the property for ~280k and walk away from the deal with $100-120k in my bank after everything and I wouldnt have to pay capital gains taxes because ive lived in it.
There are pros and cons and im coming to you guys to help me think this out.
Pros:
-walk away with 20 years worth of rent
-i wouldnt have to fix the roof, paint the house, and other large expenses that are coming up in the next 1-5 years.
-Have cash on hand for when the market turns
Cons:
-It's a great asset. It's being paid down, will make $500/mo net once I move out and I would lose that.
-If I sold it I wouldnt be able to leverage it in the future. (Keep in mind I could sell it for more than what a bank would loan against it)
-Im emotionally attached haha
My thought is I can do alot with 100k and Im not in a rush to buy more real estate so I could wait for the market to cool off and possibly invest in 2-3 duplexes or a couple of 4plexs or a larger deal... I could even do some private lending with those funds as well.
Side note: I dont need to live off the money, and my ecomm business does not need it either.
Would love to hear what your thoughts are!
Thanks,
I've spoken at the summit on house hacking where I bought a duplex when I was 20 and created the opportunity to live for free. For context to this question, my goal is to build a holdings company that invest primarily in multi-family real estate and create my ideal life from that.
Now im kind of at a cross roads. I bought that duplex when I was 20 (2 years ago) for $157,000 (currently owe ~145k). As of today there are duplexes that are the same or worse than mine in my market being sold for $260-280k and they're going in less than a couple of days (absolute insanity). Prior to finding my newest property i never considered selling because I needed the place to live. But now after seeing these prices come up and I now have a new place the live the opportunity to sell the property has presented itself.
I've lived in the property for 2 years, I could sell the property for ~280k and walk away from the deal with $100-120k in my bank after everything and I wouldnt have to pay capital gains taxes because ive lived in it.
There are pros and cons and im coming to you guys to help me think this out.
Pros:
-walk away with 20 years worth of rent
-i wouldnt have to fix the roof, paint the house, and other large expenses that are coming up in the next 1-5 years.
-Have cash on hand for when the market turns
Cons:
-It's a great asset. It's being paid down, will make $500/mo net once I move out and I would lose that.
-If I sold it I wouldnt be able to leverage it in the future. (Keep in mind I could sell it for more than what a bank would loan against it)
-Im emotionally attached haha
My thought is I can do alot with 100k and Im not in a rush to buy more real estate so I could wait for the market to cool off and possibly invest in 2-3 duplexes or a couple of 4plexs or a larger deal... I could even do some private lending with those funds as well.
Side note: I dont need to live off the money, and my ecomm business does not need it either.
Would love to hear what your thoughts are!
Thanks,
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