Possible real estate purchase - eeek!
Im not sure where to start with my long, complicated saga - am I a homebuyer? Am I an investor? Or both, or neither?
Im a single F, have a 2-flat which is paid off, I live in upstairs apt. and rent the downstairs.
Am wanting to buy a small 2 BR cute cottagey house in a better neighborhood - may be able to purchase in the 130-140 K range. In the meantime, I have not yet completed all the details of renovation of my 2 flat - I've accomplished a heckuva lot but there's enough that's not yet finished in my unit and in the basement/exterior that would mean losing out on 30-40,000 were I to just bail out now and sell as-is.
So ideally, I would stay in my 2nd floor unit and complete the work, rent out the little house for 1-2-3 years until I'm ready to sell my 2 flat and move.
In theory I should be able to rent it for just enough (just barely) to cover the monthly p & I, insurance and tax escrow, and I assume I could also write off the interest and expenses along with the 1st floor apt.
So, obviously I wouldn't get a huge profit from rent on rent the little house - the value to me is in being able to act now, to a good deal on a small house in a neighb I would not otherwise be able to afford (this small 700 sf house is an anomaly), while at the same time not losing out on an (estimated) 30-40,000 in additional profit on my 2-flat (above the estimated 30,000 in appreciation.
So, I'm not your typical real estate investor (in that I would eventually be living there and selling off my two flat) but
I'm not your typical home buyer either, as I am needing to look at it from the investment angle somewhat.
And where does capital gains tax fit into all this??
QUESTION: Is there such a thing as a real estate investment-financial planner person? I basically know what I want to do, thinking that it SHOULD work, but.... could really use a reality check about whether it's a wise move or not.
Thanks in advance for yr input