Relocating for Work: How to Manage Two Homes and Fund Your Career Move

You got the offer—the promotion you've been working toward, the career pivot you've dreamed about, or the opportunity too good to pass up. There's just one catch: It's 500 miles away. Maybe 1,500 miles away. Maybe across the country.

Now you face a cascade of questions: What do I do with my current home? How do I afford housing in the new city before I sell? Should I rent my home instead of selling? How do I avoid making two mortgage payments simultaneously? What if the new job doesn't work out?

Work relocations represent some of the most financially complex life transitions. The average relocation costs $5,000-$10,000 in moving expenses alone, and managing two properties simultaneously can easily add $15,000-$30,000 in carrying costs over several months.

The good news: With strategic planning and smart use of your home equity, you can navigate this transition without depleting your savings or creating financial stress that undermines your new opportunity.

Understanding Your Relocation Package

Before making plans, understand exactly what your employer will provide.

Typical Relocation Packages by Job Level

Entry-Level/Early Career ($2,000-$5,000):

• Basic moving expense reimbursement
• Maybe one house-hunting trip
• Limited time to relocate (2-4 weeks)

Mid-Career ($5,000-$15,000):

• Moving company for household goods
• 1-2 house-hunting trips
• Temporary housing (30-60 days)
• Some closing cost assistance
• Lease-breaking fee coverage

Senior-Level/Executive ($20,000-$100,000+):

• Full-service moving (pack, move, unpack)
• Multiple house-hunting trips
• Temporary housing (60-90+ days)
• Duplicate housing costs coverage
• Closing costs on sale and purchase
• Loss-on-sale protection (rare but exists)
• Spouse job search assistance
• Property management if renting home

Critical Relocation Package Questions

Ask Your Employer:

• Is the package lump-sum or reimbursement-based?
• What specific expenses are covered?
• Are there caps on individual categories?
• Is temporary housing included? For how long?
• Do they cover bridge financing interest?
• Is there home sale assistance (guaranteed purchase)?
• What happens if I leave within 1-2 years (repayment clause)?
• Are relocation benefits taxable?
• How long do I have to relocate?

Red Flag: Relocation packages often include repayment clauses requiring you to repay some or all benefits if you leave within 1-2 years. Understand this before accepting.

The Four Main Relocation Strategies

Strategy 1: Sell First, Then Buy

How It Works:

1. Accept job offer and start date 3-6 months out
2. List and sell current home
3. Rent temporarily in new city
4. House-hunt and purchase after settling in

Best For:

• Those with time before start date
• Strong rental markets in destination city
• Desire to explore new city before buying
• Aversion to owning two properties simultaneously

Advantages:

• No overlap of two mortgages
• Sale proceeds available for down payment
• No pressure to buy quickly
• Time to learn new market

Disadvantages:

• Must move twice (current home → rental → new home)
• Temporary housing costs
• Risk of home prices increasing while renting
• Hassle of renting in new city

Timeline:

• Month 1-2: List and market current home
• Month 3: Accept offer and close
• Month 3-4: Move and start new job
• Month 4-9: Rent while exploring new city
• Month 9-12: Purchase new home

Strategy 2: Buy First, Sell Later (Bridge Financing)

How It Works:

1. Secure bridge financing to buy new home
2. Move to new city and start job
3. Sell current home at your own pace
4. Pay off bridge financing from sale proceeds

Best For:

• Competitive housing markets (need strong offers)
• Good equity in current home
• Confidence current home will sell
• Desire to settle family immediately

Advantages:

• Non-contingent offer (more attractive to sellers)
• One move (current home → new home)
• Settle family immediately
• Sell current home at optimal time

Disadvantages:

• Carry two mortgages temporarily
• Bridge loan costs (interest + fees)
• Risk if current home doesn't sell quickly
• Higher financial stress

Timeline:

• Month 1: Secure bridge financing
• Month 2: House-hunt and purchase new home
• Month 2-3: Move and start job
• Month 3-6: Market and sell current home
• Month 6: Pay off bridge loan from proceeds

Strategy 3: Rent Your Current Home

How It Works:

1. Rent current home to tenants
2. Purchase or rent in new city
3. Treat current home as investment property
4. Keep or sell later based on performance

Best For:

• Strong rental markets (rent ≥ mortgage + 20%)
• Desire to keep investment in appreciating market
• Uncertain about long-term plans
• Home in desirable school district or area

Advantages:

• Keep home as investment
• Tenants cover mortgage
• Potential appreciation and cash flow
• Option to return if new job doesn't work out
• Tax benefits of rental property

Disadvantages:

• Landlord responsibilities from distance
• Property management fees (8-12%)
• Vacancy risk
• Tenant issues
• More complex taxes
• Two mortgages if buying new home

Timeline:

• Month 1-2: Prepare home for rental market
• Month 2: Secure quality tenants
• Month 3: Move and start job
• Ongoing: Manage rental property

Strategy 4: Employer Home Purchase

How It Works: Some large corporations offer guaranteed home purchase programs where the company buys your home at appraised value.

Best For:

• Senior executives with generous packages
• Market conditions making sale difficult
• Immediate relocation required

Advantages:

• Immediate sale at fair market value
• No showing/marketing hassle
• Company manages all details
• Guaranteed timeline

Disadvantages:

• Rare benefit (mostly Fortune 500)
• May receive below-market price
• Less control over process

Using Home Equity for Bridge Financing

For most relocating professionals, Strategy 2 (Buy First, Sell Later) offers the best balance of convenience and financial efficiency. Here's how to execute it:

HELOC as Bridge Financing

The Strategy: Use a HELOC on your current home to fund the down payment on your new home, then pay off the HELOC when your current home sells.

Why It Works:

• Access equity without selling first
• Make non-contingent offers (critical in competitive markets)
• Interest-only payments keep costs manageable
• Only pay interest on the amount drawn
• Close quickly (HELOCs typically fund in 2-4 weeks)

Real-World Example: Sarah, 38, software engineer relocating from Austin to Seattle

Current Situation:

• Austin home value: $450,000
• Mortgage balance: $250,000
• Equity available: $200,000
• Seattle home price: $650,000
• Down payment needed (20%): $130,000

Her Bridge Strategy:

1. Month 1: Applied for $150,000 HELOC on Austin home
2. Month 2: Approved, drew $130,000 for Seattle down payment
3. Month 2: Made non-contingent offer on Seattle home (accepted!)
4. Month 3: Moved to Seattle, started new job
5. Month 3: Listed Austin home for sale
6. Month 5: Austin home sold for $465,000
7. Paid off Austin mortgage ($250,000) and HELOC ($130,000)
8. Netted $70,000 after costs

Total Interest on HELOC: $2,166 over 4 months Alternative (contingent offer): Lost dream home to non-contingent offer

The Numbers:

• HELOC amount: $130,000
• Interest rate: 9%
• Time until payoff: 4 months
• Interest-only payment: $975/month
• Total interest paid: $2,166

Compare to losing your dream home or renting temporarily: The bridge financing paid for itself in convenience and opportunity.

Home Equity Loan Alternative

If You Know Exact Amount Needed: A home equity loan provides a lump sum at a fixed rate—predictable if you know your exact down payment needs.

Example:

• Borrow: $100,000
• Fixed rate: 8.5%
• Term: 10 years
• Monthly payment: $1,238
• Pay off in 3-4 months when home sells
• Total interest: ~$3,000

HELOC vs Home Equity Loan for Relocation:

• HELOC: More flexible, only pay interest on what you draw
• Home Equity Loan: Fixed rate, predictable payment, better if rates rising
• Most relocators prefer HELOC flexibility

Managing Two Mortgages Temporarily

If you're carrying two mortgages for 3-6 months during your transition, you need a survival budget.

Calculate Your Overlap Costs

Current Home:

• Mortgage payment: $_______
• Property taxes: $_______
• Insurance: $_______
• Utilities (minimal): $_______
• HOA fees: $_______
• Lawn/maintenance: $_______

New Home:

• Mortgage payment: $_______
• Property taxes: $_______
• Insurance: $_______
• Utilities: $_______
• HOA fees: $_______

Total Monthly Overlap: $_______

Multiply by 3-6 months to understand total overlap costs.

Example:

• Current home: $2,200/month
• New home: $3,100/month
• Total overlap: $5,300/month
• Over 4 months: $21,200

Minimizing Overlap Costs

Current Home (While Listed):

• Reduce utilities to minimum (adjust thermostats)
• Pause lawn service (or minimal maintenance only)
• Forward mail to new address
• Install security system and cameras for monitoring
• Consider vacant home insurance discount

New Home:

• If employer offers temporary housing, use it to delay purchase
• Consider renting temporarily to avoid purchase pressure
• Negotiate longer closing period on purchase
• Negotiate shorter closing period on sale

Employer Assistance: Many employers offer "duplicate housing" assistance for 30-90 days. This could cover $3,000-$9,000 of overlap. Ask for it if not offered!

Rent vs. Sell Decision Matrix

Should you rent your current home instead of selling? Here's how to decide:

When Renting Makes Financial Sense

The 1% Rule: Monthly rent should be at least 1% of home value.

Example:

• Home value: $400,000
• Minimum rent: $4,000/month
• Your mortgage + costs: $2,800/month
• Cash flow: $1,200/month (before vacancies and repairs)

If you can't get 1% or close to it, renting rarely makes sense.

The Comprehensive Calculator:

Monthly Income:

• Gross rent: $_______

Monthly Expenses:

• Mortgage (P&I): $_______
• Property taxes: $_______
• Insurance (landlord policy): $_______
• HOA fees: $_______
• Property management (8-12%): $_______
• Maintenance reserve (1% annually ÷ 12): $_______
• Vacancy reserve (8-10% of rent): $_______

Net Monthly Cash Flow: $_______

If negative cash flow: You're paying each month to keep the property. Only makes sense if you expect significant appreciation or will return to the area.

If small positive cash flow ($100-300): Might break even after unexpected repairs. Be prepared to subsidize.

If strong positive cash flow ($500+): Potentially good investment if you're comfortable being a long-distance landlord.

Non-Financial Considerations

Reasons to Rent (Even If Marginal Financially):

• Uncertain if relocation will be permanent
• Expect to return within 2-5 years
• Market is temporarily down (wait for recovery)
• Strong emotional attachment to home
• Want to keep foot in appreciating market
• Benefits of investment property diversification

Reasons to Sell (Even If Rental Income is Good):

• Don't want landlord stress from distance
• Need sale proceeds for down payment
• Want clean break and simplicity
• Relocation is definitely permanent
• Don't want two mortgages
• Current market is strong for sellers

Property Management Essentials

If you decide to rent, hiring property management is essential when you're hundreds or thousands of miles away.

Property Management Fees: 8-12% of monthly rent

What They Handle:

• Tenant screening and placement
• Rent collection
• Maintenance calls and coordination
• Emergency response
• Evictions if necessary
• Regular property inspections
• Accounting and tax documents

What You Still Handle:

• Major repair decisions
• Appliance replacement decisions
• Lease term decisions
• Property insurance
• Tax filing for rental income

Vetting Property Managers:

• Interview at least 3 companies
• Check references from current clients
• Verify licensing and insurance
• Ask about vacancy rates for properties they manage
• Understand fee structure completely
• Review contract carefully (especially termination clauses)

Tax Implications of Work Relocation

Moving Expense Deduction (Currently Suspended)

Important: The moving expense deduction was suspended for most taxpayers from 2018-2025 by the Tax Cuts and Jobs Act.

Exception: Active-duty military members can still deduct moving expenses.

After 2025: Deduction may return. Keep all receipts and documentation.

Home Sale Tax Exclusion

Primary Residence Exclusion:

• $250,000 gain excluded (single)
• $500,000 gain excluded (married)
• Must have lived in home 2 of last 5 years

Work Relocation Exception: If you must sell before meeting the 2-year requirement due to work relocation (50+ miles), you get a partial exclusion.

Example: Lived in home for 1 year (50% of 2-year requirement)

• Single exclusion: $125,000 (50% of $250,000)
• Married exclusion: $250,000 (50% of $500,000)

Rental Property Considerations

If you convert your primary residence to a rental:

• You can no longer claim primary residence exclusion when you eventually sell (unless you meet specific requirements)
• Rental income is taxable
• Expenses are deductible (mortgage interest, property tax, insurance, repairs, depreciation)
• Depreciation recapture tax when you sell

Consult a CPA: Tax implications of keeping your home as a rental are complex and very fact-specific.

Relocation Timeline and Checklist

3-4 Months Before Start Date

Week 1-2: Accept Offer and Plan

• Accept job offer and negotiate relocation package
• Determine strategy (sell first, buy first, or rent)
• Get pre-qualified for HELOC if bridge financing needed
• Get pre-approved for new mortgage in destination city
• Research new city neighborhoods
• Calculate total relocation budget

Week 3-6: Execute Home Strategy

• If selling: Interview realtors, determine listing price
• If renting: Interview property managers, determine rent price
• Secure bridge financing (HELOC or home equity loan)
• Begin home prep (repairs, decluttering, staging)
• Research new city housing market
• Schedule house-hunting trip

Week 7-12: Move Forward

• List home for sale OR secure tenants
• Take house-hunting trip to new city
• Make offer on new home if using bridge financing
• Start packing and preparing for move
• Arrange moving company or truck rental
• Notify utilities, insurance, mail forwarding

1-2 Months Before Start Date

Week 13-16: Finalize Housing

• Close on new home OR secure temporary housing
• Complete move coordination
• Transfer utilities at both properties
• Update insurance policies
• Arrange travel for family
• Set up property monitoring for vacant home

Week 17-20: Move!

• Complete move
• Start new job
• Get family settled
• Continue marketing current home if still unsold
• Establish new routines

First 6 Months in New City

Ongoing:

• Monitor current home sale/rental
• Pay both mortgages if overlapping
• Track all relocation expenses for employer reimbursement
• Explore new city and neighborhood
• Make decision about keeping vs selling rental
• Close on sale of current home
• Pay off bridge financing
• Settle into new community

Common Relocation Mistakes to Avoid

1. Underestimating Total Costs

Beyond moving truck and movers, account for:

• Time off work for house hunting and moving
• Meals and hotels during transition
• Duplicate housing costs
• New furniture for different-sized home
• Deposits and fees
• Emergency fund for unexpected issues

Budget 20-30% more than your initial estimate.

2. Buying Too Quickly

The pressure to settle your family can lead to:

• Overpaying in hot market
• Buying in wrong neighborhood
• Compromising on must-haves

Consider renting 3-6 months to learn the market and city unless employer is covering temporary housing for limited time only.

3. Overpricing Current Home

Wanting to maximize proceeds, many sellers overprice and then their home sits:

• Price home to sell within 30-60 days
• Every month unsold costs you mortgage + expenses
• Stale listings require price cuts anyway
• Get comparative market analysis from local realtor

4. Not Having a Plan B

What if:

• New job doesn't work out?
• Family hates new city?
• Current home won't sell?

Build flexibility:

• Keep some liquid savings
• Don't burn bridges with old employer
• Consider renting current home for 1 year (gives option to return)
• Don't over-leverage yourself

5. Ignoring Tax Implications

• Track all moving expenses (may become deductible again)
• Understand home sale tax consequences
• Consider rental property tax complexity
• Consult CPA before making major decisions

Real Relocation Success Stories

The Tech Exec: San Francisco to Austin

David, 42, VP of Engineering, family of four

Challenge: Hot market in both cities, needed to move within 60 days

Solution:

• Opened $200,000 HELOC on SF home
• Drew $180,000 for 20% down on $900,000 Austin home
• Made non-contingent offer (accepted in multiple-offer situation)
• Moved family to Austin
• Listed SF home 2 weeks later
• Sold SF home in 18 days for $50,000 over asking
• Paid off HELOC

Outcome: Total HELOC interest: $2,400 over 6 weeks. Secured dream home in Austin that would have sold to another buyer with contingent offer. SF home sale netted $340,000 after all costs.

The Consultant: New York to Charlotte

Amanda, 36, single, management consultant

Challenge: Uncertain if Charlotte role would be permanent, didn't want to sell NYC apartment

Solution:

• Rented NYC apartment for $3,200/month (mortgage was $2,400)
• Rented in Charlotte ($1,600/month) for first year
• Property manager handled NYC apartment ($320/month fee)
• Net cost: $520/month to keep NYC apartment

Outcome: After 18 months, loved Charlotte and decided to stay. Sold NYC apartment into strong market for $125,000 gain. Purchased Charlotte home with proceeds. Glad she kept option open.

The Young Professional: Chicago to Nashville

Marcus, 28, single, marketing manager

Challenge: Limited savings, minimal relocation package, needed to sell to afford new place

Solution:

• Sold Chicago condo before moving (took 45 days)
• Employer provided 60 days temporary housing in Nashville
• Used temporary housing period to house-hunt
• Found perfect place and purchased with sale proceeds

Outcome: Single move, no bridge financing, smooth transition. Temporary housing benefit was clutch—don't hesitate to ask for it!

Your Relocation Financial Checklist

Before Accepting Offer:

• Understand complete relocation package
• Negotiate for additional benefits if needed
• Calculate total relocation costs
• Determine if you can afford the transition
• Research cost of living in new city

Immediately After Accepting:

• Choose strategy: Sell, rent, or bridge
• Get pre-qualified for financing if needed
• Research new city housing market
• Calculate overlap budget
• Build relocation emergency fund

3-4 Months Before:

• List home for sale OR find tenants
• Secure bridge financing if needed
• House-hunt in new city
• Get pre-approved for new mortgage
• Start packing and preparing

1-2 Months Before:

• Close on new home or secure rental
• Finalize move logistics
• Transfer utilities and services
• Update all insurance
• Prepare current home for vacancy/tenant

After Move:

• Monitor current home sale/rental
• Track all expenses for reimbursement
• Pay overlapping housing costs
• Close current home sale
• Pay off bridge financing
• Settle into new city

Your Career Move Doesn't Have to Break the Bank

Work relocations are stressful, but they don't have to be financially devastating. With strategic planning, smart use of your home equity, and a clear-eyed understanding of your options, you can make this transition smoothly.

Your home equity is a powerful tool that can eliminate the biggest logistical hurdle: managing two properties during your transition. Whether you use a HELOC for bridge financing, convert your home to an investment property, or sell outright—having equity gives you options and flexibility.

Ready to Finance Your Relocation?

If you're preparing for a work relocation and need bridge financing to make a competitive offer on your new home, getting pre-qualified for a HELOC is a smart first step. Understand your borrowing power and create a transition plan that supports your career without overwhelming your finances.

Get Pre-Qualified for a HELOC Today →

Your next career chapter is waiting. Make sure your finances are ready to support the move.