FAFSA and tax implications of selling house

[sevenout]

So, the time has come where I can say with certainty I will not be living in the same city I own my house starting next MD/DO academic year(So Juneish). I have been admitted out of state and waitlisted at another.

According to real estate websites (zillow,realtor,redfin,etc) I have about 150K in equity in the house I own. I realize closing costs and possible inaccuracies will likely draw that number down some but I believe there is a decent chunk of change to be made by selling.

FAFSA will still offer me full loans for second-year even with all that money being made correct?

Anyone have experience using a company like renters warehouse to rent it out with "insurance" so to speak? If so I could easily rent in my new college town with the profits from renting. I owe about 975 monthly and similar places around me are renting for about 1650 so even with substantial fees I am winning, at least in the current housing market.

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[dpmd]

So, the time has come where I can say with certainty I will not be living in the same city I own my house starting next MD/DO academic year(So Juneish). I have been admitted out of state and waitlisted at another.

According to real estate websites (zillow,realtor,redfin,etc) I have about 150K in equity in the house I own. I realize closing costs and possible inaccuracies will likely draw that number down some but I believe there is a decent chunk of change to be made by selling.

FAFSA will still offer me full loans for second-year even with all that money being made correct?

Anyone have experience using a company like renters warehouse to rent it out with "insurance" so to speak? If so I could easily rent in my new college town with the profits from renting. I owe about 975 monthly and similar places around me are renting for about 1650 so even with substantial fees I am winning, at least in the current housing market.

It won't matter for getting loans, just for need based aid. No experience with using a company to rent it out.

 

[The White Coat Investor]

Assets count against you on the FAFSA, but not nearly as much as income does. More on the formula here:

Why Most Doctors Shouldn't Bother With Financial Aid Planning [FAFSA] | White Coat Investor

Financial aid planning is the new thing to maximize the difference between the cost of attendance and the expected family contribution. But most high-income professionals shouldn't bother.

www.whitecoatinvestor.com

Personally, I'd probably use that money to pay for a year or two of school and skip the loans.

 

[BorntobeDO?]

Sold my house prior to medschool for less equity than your talking about but still a decent amount. It never went as far as I thought it would and I basically avoided only credit card debt, and had some money to help with relocations/apps. Even with a family and getting food stamps for a good portion of med school I still feel I would have been better off renting my old house. I had a very similar differential between rent and monthly payments as you do and I think I would have been better off keeping the house. Also my house rose an additional 50k+ In value during medical school. If you can make it work, rent will be the better option long term.