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[quote=Anonymous][quote=Anonymous]Current home is worth $585k. Owe $90k on a HELOC. Looking to move up to something in the $850k range.

Option A: sell house (clearing $460k) and then get a $390k mortgage on new place.

Option B: tap current HELOC for $225k down payment and then get $625k mortgage on new house (which would then be conforming). I can rent the current house to an O4, which would be $3100/month. The new HELOC balance of $315k would be around $1500, and taxes and insurance is another $500, so I would clear $1100/month before maintenance. I would accelerate the HELOC balance as I have done the last few years.

Thoughts?  Suggestions?  [/quote]

See your accountant about the huge tax advantages you will get from a rental. Those taxes that others have mentioned are deductible. Renting a home is one of the last tax shelters out there. If you can clear that much after paying the mortgage you also put yourself in a good position financially  down the road. If you are going to manage do so but don't be more than 1/2 hr away from the property. Get a fleet of reliable contractors, electricians, plumbers and general maintenance people and keep the house in tip top condition, all those repairs are also deductible in the year they are made.  [/quote]

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