Selling stock to buy foreclosure

Thanks. Much appreciated.

If you have enough invested assets borrowing against a Pledged Asset Line may be a better option than HELOC. I wouldn't sell stock and realize the tax hit until aftwe the winning bid goes through which might be too late unless you have other cash lined up to finalize sale. My county requires 5% deposit for auction (forfeited if you win but don't come through w full payment) and balance is due next day.

If you dont wind up renting or flipping the house it just sounds like an expensive alternative to renting a storage facility and potential maintenance liability. Hope you don't get squatters in a vacant home just used for storage.

I was already looking at buying old shop space for my wife’s business so this is a better alternative since it’s so close. It’s also the classic example of one of the worst homes in a great neighborhood so it’s a good investment. I’ve renovated before and could probably flip this into a $300k sale with little renovation if rates drop and the market returns to normal. The house next to it is $900k.

Probably more important than the the tax vs interest considerations, are you overweight these individual stock positions and what is their forward outlook. It may be time to trim those anyway. Also, you're going to eventually pay LTCG on them unless you anticipate holding until death, selling in a very low income year while in zero LTCG rate or donating shares. Unless the sale would trigger NIIT (additional 3.8% tax) or you plan to move to a state with lower tax on LTCG there may not be much advantage to putting of the LTCG bill.

What's the house usually go for OP I mean on the private market? Those homes that seem too good to be true rarely ever actually foreclose, something else happens as in a private buyer, they refinance, sell, etc.

No way to know his tax rates with the info he gave. But agree with your earlier rep!y. If he can pay loan back in short period as described, then would go that route.

A side benefit to this scenario is that he is keeping his stocks working for him while paying off the debt. It is too easy to sell investments and not keep the proceeds invested in something different.

Plan is definitely to get my wife’s shite out of taking over the house. There is decorating shite everywhere. If she stops doing her business then I could sell it.

My 1900 sq foot comp was for a similarly run down home on a worse lot (slopes into a valley near interstate). Also it was old wood while the one I’m looking at is brick. The $300k estimation of course assumes some renovation. I’m saying if I buy it right and renovate for a total investment under $250k then I’m confident I could sell for $300k. $190 a sq ft is typical for my neighborhood.

My contractor is very good and pretty cheap. He renovated my current home and another I just sold. I got him from the realtor I use for everything. She is an experienced flipper and buys at auctions regularly. She gave me this one as it’s next door to me and she prefers to flip outside of city limits as she thinks the code inspectors are ridiculous. She’ll handle the auction for me.

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