U
/u/katelynteel
Guest
My husband and I started renting our previous house in Denver, CO last year when we bought a new house.
The mortgage is $260k at 3.5% interest. We currently rent the house for $3,400 and we have great tenants. It’s worth $700k and fairly updated as I lived in it 10 years before we met. We could sell it and use the equity to pay down a substantial amount on our current home at a 6.5% rate. Right now our rental income is supplementing our monthly payment on our current residence. I moreso stress about the large amount of debt (we have another rental in Arvada as well that we’ve rented for 4 years), so that’s three houses with debt, the time to maintain as I work a very demanding job, and the risk of the wrong tenant which we have experienced. A plus is my husband is a handyman. The Arvada rental is similar stats to the Denver home.
I lean toward wanting financial freedom now and less risk and more time back (it’s currently just the two of us and we would like to focus soon on a family - we’re 35) and he leans towards building equity and keeping the home long term for retirement. We have two years to take advantage of no capital gains. I know holding onto real estate is a good investment, but we just can’t decide if it’s worth the effort.
Would you sell the Denver home? Is it cash flowing enough? We’d still have the Arvada rental. Would you consider selling both rentals? We would literally have no mortgage on our current home in that case.
We just can’t decide!
submitted by /u/katelynteel
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Sell or Rent House?
Continue reading...
The mortgage is $260k at 3.5% interest. We currently rent the house for $3,400 and we have great tenants. It’s worth $700k and fairly updated as I lived in it 10 years before we met. We could sell it and use the equity to pay down a substantial amount on our current home at a 6.5% rate. Right now our rental income is supplementing our monthly payment on our current residence. I moreso stress about the large amount of debt (we have another rental in Arvada as well that we’ve rented for 4 years), so that’s three houses with debt, the time to maintain as I work a very demanding job, and the risk of the wrong tenant which we have experienced. A plus is my husband is a handyman. The Arvada rental is similar stats to the Denver home.
I lean toward wanting financial freedom now and less risk and more time back (it’s currently just the two of us and we would like to focus soon on a family - we’re 35) and he leans towards building equity and keeping the home long term for retirement. We have two years to take advantage of no capital gains. I know holding onto real estate is a good investment, but we just can’t decide if it’s worth the effort.
Would you sell the Denver home? Is it cash flowing enough? We’d still have the Arvada rental. Would you consider selling both rentals? We would literally have no mortgage on our current home in that case.
We just can’t decide!
submitted by /u/katelynteel
[link] [comments]
Sell or Rent House?
Continue reading...