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/u/rachelp94
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Hi Reddit! I (29 F) purchased my house (2bed, 1.5 bath townhome) in 2019 for $125,000 at 3.5% interest rate. I didn’t put down a full 20% as it was my first time buying a home and I wanted to keep a nest egg in savings in case of any repairs that inevitably come with homeownership.
Since the purchase of my house, I’ve updated quite a bit (new tub / shower, new laminate wood floors downstairs, updated kitchen & new patio). I have definitely increased the value and have also managed to save back up the money I spent on down payment, and then some. My savings account is in a good place.
I have a tenant (a friend who needed a place to stay) who was supposed to be here temporarily but is really down on her luck & is not leaving anytime soon. I’ve predominately used her rent for updates to my house this year, but I only charge her $450/month. This was both to help her save & because my current house is really not meant for 2 people. She lives in my office with custom built in desks & we don’t have much personal space. Plus I never needed her $$.
Additionally, my HOA just informed us that they’ll be charging an extra $150/month for the next 3 years for roof repairs that they didn’t properly budget for. And mine isn’t even getting replaced, of course.
Anyway, now that the housing market has skyrocketed, and it’s evident my friend needs a place to stay long term, plus the HOA thing, I’ve been considering selling my house and upgrading to a slightly bigger home. I’ve always known my home was a starter home, but I’m having trouble thinking of it as just an investment. There are things like kitchen layout & laundry room that are impossible to fix. Also, considering comps in my neighborhood, I’m confident I could sell my house for $200-$245k (currently owe $106k). There are townhomes near my current neighborhood that are selling for $245-$265k that have 2-3 bedrooms & 2-4 bathrooms. They’d be a perfect, slight upgrade from what I have. So, I could write a formal lease for my tenant, give her her own proper space with a private bathroom, charge her more in rent & still afford the mortgage just fine.
I guess my question is, do you think it’s worth it to sell my house? Some people have said it’s not a great idea because I’m taking on a more expensive mortgage, and losing my low interest rate. Especially if my tenant decides to leave. This is all true, I’ll never find a place this cheap again, BUT I feel like I’m sitting on a ton of money that I could cash out and invest to turn into more money, long term. Kind of seems like a smart financial decision to me, but I have no experience with this!
Any advice??
submitted by /u/rachelp94
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Sell for profit or stay safe?!
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Since the purchase of my house, I’ve updated quite a bit (new tub / shower, new laminate wood floors downstairs, updated kitchen & new patio). I have definitely increased the value and have also managed to save back up the money I spent on down payment, and then some. My savings account is in a good place.
I have a tenant (a friend who needed a place to stay) who was supposed to be here temporarily but is really down on her luck & is not leaving anytime soon. I’ve predominately used her rent for updates to my house this year, but I only charge her $450/month. This was both to help her save & because my current house is really not meant for 2 people. She lives in my office with custom built in desks & we don’t have much personal space. Plus I never needed her $$.
Additionally, my HOA just informed us that they’ll be charging an extra $150/month for the next 3 years for roof repairs that they didn’t properly budget for. And mine isn’t even getting replaced, of course.
Anyway, now that the housing market has skyrocketed, and it’s evident my friend needs a place to stay long term, plus the HOA thing, I’ve been considering selling my house and upgrading to a slightly bigger home. I’ve always known my home was a starter home, but I’m having trouble thinking of it as just an investment. There are things like kitchen layout & laundry room that are impossible to fix. Also, considering comps in my neighborhood, I’m confident I could sell my house for $200-$245k (currently owe $106k). There are townhomes near my current neighborhood that are selling for $245-$265k that have 2-3 bedrooms & 2-4 bathrooms. They’d be a perfect, slight upgrade from what I have. So, I could write a formal lease for my tenant, give her her own proper space with a private bathroom, charge her more in rent & still afford the mortgage just fine.
I guess my question is, do you think it’s worth it to sell my house? Some people have said it’s not a great idea because I’m taking on a more expensive mortgage, and losing my low interest rate. Especially if my tenant decides to leave. This is all true, I’ll never find a place this cheap again, BUT I feel like I’m sitting on a ton of money that I could cash out and invest to turn into more money, long term. Kind of seems like a smart financial decision to me, but I have no experience with this!
Any advice??
submitted by /u/rachelp94
[link] [comments]
Sell for profit or stay safe?!
Continue reading...