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/u/BelAirJazz
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Hi Reddit! I’d love your advice on a real estate decision my wife and I are grappling with. Here’s the situation:
We’re a family of four (two kids—2 years and 2 months old) living in Southern California. We’re currently renting an apartment, but we’re looking to buy a home in a good area to raise our children. Long-term, our dream is to retire in a small place by the beach, but right now, we’re focused on creating a stable home for our family.
Here’s the twist: I own a rental property, a duplex in a not-so-great area, that cash flows $500/month. I’ve had it for 8 years, and it’s been a solid investment. Our household income is $250k, and we’ve saved $200k for a down payment. If I sell the duplex, I’d net around $200k, giving us $400k total for a down payment on a nice home.
Here’s where I’m stuck: 1. Option 1: Sell the duplex and use the proceeds with our savings to put a large down payment on a house in a nice area, reducing our mortgage and securing a better lifestyle now. 2. Option 2: Keep the duplex as a long-term investment, buy a smaller home with our savings, and continue letting the rental cash flow. The idea is that the rental would eventually be paid off and provide additional retirement income.
In 30 years, the plan is to sell the house we raise our kids in and downsize to a beach house for retirement.
What makes the most sense? Should I take the safer route now and sell the duplex, or stick with the original plan and focus on building wealth through real estate?
I’d love to hear your thoughts, especially if you’ve been in a similar situation!
Edit: Thanks in advance for your advice and insights! I really appreciate the perspective this community brings.
TL;DR: Family of four in SoCal with $250k income and $200k savings. I own a rental duplex cash-flowing $500/month that I could sell for $200k. Should I sell it and use the $400k total for a large down payment on a house in a nice area, or keep the duplex and buy a smaller home while letting the rental cash flow for future retirement income? Goal: Raise kids in a nice area, then retire by the beach. What would you do?
submitted by /u/BelAirJazz
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Should We Sell Our Rental Property to Buy a Family Home or Stick to the Original Plan?
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We’re a family of four (two kids—2 years and 2 months old) living in Southern California. We’re currently renting an apartment, but we’re looking to buy a home in a good area to raise our children. Long-term, our dream is to retire in a small place by the beach, but right now, we’re focused on creating a stable home for our family.
Here’s the twist: I own a rental property, a duplex in a not-so-great area, that cash flows $500/month. I’ve had it for 8 years, and it’s been a solid investment. Our household income is $250k, and we’ve saved $200k for a down payment. If I sell the duplex, I’d net around $200k, giving us $400k total for a down payment on a nice home.
Here’s where I’m stuck: 1. Option 1: Sell the duplex and use the proceeds with our savings to put a large down payment on a house in a nice area, reducing our mortgage and securing a better lifestyle now. 2. Option 2: Keep the duplex as a long-term investment, buy a smaller home with our savings, and continue letting the rental cash flow. The idea is that the rental would eventually be paid off and provide additional retirement income.
In 30 years, the plan is to sell the house we raise our kids in and downsize to a beach house for retirement.
What makes the most sense? Should I take the safer route now and sell the duplex, or stick with the original plan and focus on building wealth through real estate?
I’d love to hear your thoughts, especially if you’ve been in a similar situation!
Edit: Thanks in advance for your advice and insights! I really appreciate the perspective this community brings.
TL;DR: Family of four in SoCal with $250k income and $200k savings. I own a rental duplex cash-flowing $500/month that I could sell for $200k. Should I sell it and use the $400k total for a large down payment on a house in a nice area, or keep the duplex and buy a smaller home while letting the rental cash flow for future retirement income? Goal: Raise kids in a nice area, then retire by the beach. What would you do?
submitted by /u/BelAirJazz
[link] [comments]
Should We Sell Our Rental Property to Buy a Family Home or Stick to the Original Plan?
Continue reading...