taking the next step

[NNguyen]

Hello everyone, hoping for some insight or advice as to what some viable options might be.



I bought my first house about 4 years ago (at a good price)

two years ago I moved out of there and turning it into a rental (investment) home, I bought my second house

with a basement suite and it has been going well, and have decided to rent out the top and move on and find something else



I was renting out rooms in my first house to friends and slowly they took over the entire house

I wasnt overly concerned about making money as long as the bills were payed as I was going back to school

my second house with the suite allowed me to go to school, have my privacy and still beable to maintain my bills



My plan is to sell my first house and potentially invest into another suited house for myself and possible a single family unit

Im very green to this and somewhat luckily stumbled upon this path thus far.

How do I go about maximizing my return on my first house that has become a rental, with such things as capital gains, forms of leverage I might have with banks/ real estate agents ect...



thanks

 

[housingrental]

As with everything "it depends" - you'll likely be better off not selling the house to use its proceeds to invest elsewhere but keeping it and saving money (or pulling out equity) to purchase a third property

 

[NNguyen]

thanks, I will provide some more details to my situation



with what the house is rented out for I am not making anything on it on a month to month basis

which isnt the main goal but would be nice

as said when I first bought the home I intended on living there but things change



the house will need touch ups over the next few years (windows, paint ect) and for the price I am looking to sell it

the buyer should assume those tasks with me still coming out on the positive side.

If I could find something similar to the house Im in now it would be perfect as it generates some positive cash flow





Im curious as how selling a rental house and turning the gains to buying a new principal residence works

 

[housingrental]

There are transaction costs to buy and sell property - it's rare to make sense of selling if buying a similar property though there are situations where it's applicable



You should the property appraised at time from changing use from owner occupied to rental - gains taxed from rental change over value to sale value

 

[NNguyen]

thanks, I had the house appraised before I claimed it a rental.

not sure if the next property would be consider similar as Im looking at either a suited house or a duplex

rather then a single family unit.



I ll take everything into consideration and keep moving on