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/u/TearBrief8396
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I have a nice 3bed 3 bath house at the moment worth 325k. I still owe 155k on a 2.75% loan. We are in the process of looking for a new house but not sure what we want to do with the old house. I know i want to have a rental property to produce more income but wondering what is the better option.
Option 1: Sell the house and take the 170K profit to use for down payment on New 500k house and then use the rest to buy one or two smaller rentals. These would be somewhere in the 200k range so that we can get 20% down on both.
Option 2: Keep the existing house at 2.75% and low payment of $1200/month and rent it out for $2000-2300/month. Then use the equity in the house as a down payment for a new 500k house.
My concern with option 1 is trying to find a good property for 200k and then also having a high interest rate would not be ideal. This option would however give me the option to search around the city to find something in a better location but still i think would be hard to find.
My concern with option 2 is it is a nicer house and higher rent so finding renters might be more difficult. Also, taking out a HELOC is not ideal but not the end of the world.
If anyone has suggestions on the best option please let me know. I am in the Des Moines metro for reference.
submitted by /u/TearBrief8396
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Rent Current Property or Buy More?
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Option 1: Sell the house and take the 170K profit to use for down payment on New 500k house and then use the rest to buy one or two smaller rentals. These would be somewhere in the 200k range so that we can get 20% down on both.
Option 2: Keep the existing house at 2.75% and low payment of $1200/month and rent it out for $2000-2300/month. Then use the equity in the house as a down payment for a new 500k house.
My concern with option 1 is trying to find a good property for 200k and then also having a high interest rate would not be ideal. This option would however give me the option to search around the city to find something in a better location but still i think would be hard to find.
My concern with option 2 is it is a nicer house and higher rent so finding renters might be more difficult. Also, taking out a HELOC is not ideal but not the end of the world.
If anyone has suggestions on the best option please let me know. I am in the Des Moines metro for reference.
submitted by /u/TearBrief8396
[link] [comments]
Rent Current Property or Buy More?
Continue reading...