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/u/catsby90_39
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Seeking some perspective and advice moving forward on how to handle the situation I find myself in. I am a local Austinite that purchased a smaller home in a bedroom community in early 2019. At the time I was not yet married but purchased the 3-2 home for around 270k. During the Covid run up in pricing I decided to cash out refinance to a lower 3.4% rate to unlock some of the equity gains and utilize the funds to purchase a new larger home for my growing family. My wife and I got married in 2021 and decided to purchase a larger 4-3 home slightly further out of town near Round Rock while maintaining the 3-2 as a rental. We admittedly fell victim to the FOMO of being able to afford a large enough home to grow into and purchased at the peak of the market in May of 2022. Current loan balance is around 550k at a 5.25 rate. Overall the home and neighborhood are great and was only 2 years old at the time of purchase, so no major issues. We also recently had a son who is 5 months old.
Based on comps, I estimate my home would probably only sell for 475. I know this doesn’t matter as long as we don’t plan on moving in the immediate term, but I can’t help but feel trapped and at the mercy of the market moving forward. Our plans were always to stay at least 5-7 yrs, but I’m not sure how the market will shift or change in that period.
Seeking some advice from anyone who has been in a similar situation in the past. Sell the rental that has around 50k in equity at the moment but barely cash flows? Start paying more into principal of current loan?
submitted by /u/catsby90_39
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Underwater on 2022 Home Purchase
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Based on comps, I estimate my home would probably only sell for 475. I know this doesn’t matter as long as we don’t plan on moving in the immediate term, but I can’t help but feel trapped and at the mercy of the market moving forward. Our plans were always to stay at least 5-7 yrs, but I’m not sure how the market will shift or change in that period.
Seeking some advice from anyone who has been in a similar situation in the past. Sell the rental that has around 50k in equity at the moment but barely cash flows? Start paying more into principal of current loan?
submitted by /u/catsby90_39
[link] [comments]
Underwater on 2022 Home Purchase
Continue reading...