Submitted by Moriabound t3_10qea4a in personalfinance
I'm a homeowner in Silicon Valley; 20+ years in owner-occupied townhome. It could sell for $1.2M plus (2 sales in 2021 for similar floorplans in retail shape for over $1.6M; mine would need new paint/carpet/appliances). I have only a first mortgage (refi'd in 2006) with $170K balance, currently with Mr. Cooper. So, $1M-1,2M equity. Business has losses last several years so I'm wrapping it up.
Cost basis for the house is about $240K (1994 purchase).
I'm having no luck finding anyone who will do a refi or a home equity loan, even for just for loan consolidation without cash-out, without having recent/current income stream.
I could just sell and leave the area and start over, but the market has weakened locally in the past year and I don't want to panic-price. I was also hoping to use equity to buy another cheap place (like a mobile home) to live, rent this place out (good rental market), and eventually do a 1031 exchange. But if I can't access cash out of it soon (or I get lucky and business assets sell), I'll have to sell regardless of market and tax consequences.
For that matter, if there are other mechanisms besides 1031 exchanges -or- changes that work for non-income property, I'd love to hear that as well. I did read the group wikis first.
Thank you for any advice or references to resources.