What are the pros and cons to listing a house for sale the same year I purchased it?

I purchased a property in foreclosure at a bargain price this summer. I then had it inspected, repaired and now I have a renter in it. The renter covers the mortgage, but another property that I have had my eye on for years is available right now at a reduced price. If I sold my investment property, I would have enough to attain that house I have always wanted. What are the pros and cons to this transaction? And, are there any alternative solutions? Thanks for your time.What are the pros and cons to listing a house for sale the same year I purchased it?
You are looking at a couple of issues here....





When does the renter's lease expire? (You cant evict a renter just because you want to sell the house)





Currently, the market is in the slumps and selling your home will probably take a while. (by the time you sell, your dream home may already be sold)





So what to do in these situation? You have a couple of options.....





1) You can put the home on the market while still having the renter in the house. You will sell the home as income property and another owner will take your place as ';landlord';. However you are more than likely to sell to another investor instead of a regular home buyer. Home buyers dont buy homes with renters still living in the house.





2) You can option your dream home for up to 6 months with an amount for consideration(amount given to seller to agree to option). it will be on ';hold'; for you until you sell your investment property.(IF you sell your property) Though this depends on the seller's willing to let their property be optioned for such a long time contingent if you sell your investment property. Because of the current housing market, they may agree to it, or they may not.





3) get a conventional loan or hard money loan from another investor (if your dream home is a prospective flip property)





Hope I helped.What are the pros and cons to listing a house for sale the same year I purchased it?
well when you sell, you are going to have to pay the commission to the real estate agent, and that might eat up most of the potential profits you have gained. And you'll also have to pay capital gains taxes on any appreciation in the value.





But both of these have nothing to do with you owning the house for just a year.
Lisa, chances are, even with the improvements you've made you would lose money, maybe quite a bit. The chances that an appraisal would come in for enough more to allow you to buy the other place is pretty slim as well. Plus FHA has a 91 day rule for sellers. Most buyers today are using FHA insured loans.