Is There A Better Way Than What Ihave Planned...?
My plan is to rent out my primary residence after I have lived there for a full two years. Prior to renting the property out I would obtain a HELOC for the equity I have earned. I would then purchase a new primary residence using the HELOC for a down payment.
Is there anything that I'm missing? Or, is there a better way?
Thanks for the help! - Justin
Without knowing any of your goals, who can say what's the best way for you to do business?
And, yeah, you can do it that way, but why wait 2 years? You're going by the "gotta live there 2 of the last 5 years" rule to get the tax break? Well, then you have three years left to sell it, so if you're going to keep it LONG term, it won't help after all. How's about living there 1 year, then moving out, and renting it out?
The main problem I see with doing things this way, is it'll take until you're old and gray to have enough rentals to help substantially.
Maybe post a little more info on what your goals are, and someone on here could help you a little better.
Good luck with whatever you decide to do!!