I have a weird sitch.
I bought my house in September of 2020 from my parents for $490,000.00. The house is a double lot, that is right next to the university of Denver (a private university that has a TON of demand). The housing market out here is incredible. People keep buying homes around me and scraping them then building these multi million dollar mansions - I’m not joking. Go on Zillow and look for yourself - just search the DU neighborhood.
My parents honestly cut me a HUGE ass deal too. The fair market value of this place was over $550k this summer. And I only owe $360k.
Now, the last little tidbit of information is that I also have six figures in my brokerage account that is pretty heavily invested in Tesla (this is not the focal point of my situation). But, how in the mother ■■■■ can I pledge any of that in order to secure a HELOC so that I can improve my house? I’m not interested in paying short term cap gains, so, I need this done in the most tax efficient way possible. Most banks are saying that because it’s only been a few months that they won’t send someone out to re-appraise the property - which really limits me in what I can establish a LLC for.
I’m also probably going to spend $30k as a down payment to buy another rental property in cherry creek - which will require paying cap gains on, but whatever.