Skip to main content

Big new home purchase... help whether to sell or rent current home (newbie investor)

We live in a desirable HCOL area (CA) and have a very affordable payment on our current home. However, we found an amazing place that better suits our family's needs and went for it. We've decided to buy, that's not in question. Here’s the dilemma - what to do with our current home.

- Current home: worth $2m, $800k equity, all in payments $5k/mo (at 3.5%), estimated rent ~$7k/mo

- New home: $2.5m with ~$15k/mo payment (which we clearly afford but still gives us heartburn)

We’re buying without contingencies and have other ways to come up with down payment. Almost all of our NW is currently in stock, so it's probably a good idea to diversify even if we didn't buy this house. The two options I'm considering:

- Sell and pay down the high interest mortgage (recast) in our new house by another ~$800k

- Keep and rent it, cash flowing up to $2k/mo and enjoy potential future appreciation

The idea of lowering our $15/mo mortgage would help me sleep better at night. However, the idea of giving up a valuable property that cash flows with such a low interest rate seems like it may be foolish. I’ve never owned a rental property and am not opposed to being a landlord longterm, but it is counter to the objective of trying to simplify our lives with this move.

Our goal is to retire early in the next 5 years and we're well on that path even if this purchase sets us back slightly. I'm not a finance whiz or a real estate guy, so I would love any advice based on the situation above. Huge thanks to all I’ve learned from here!

TLDR: we are buying a bigger family home and need to decide what to do with our current house - sell now or keep and rent it - in order to keep on track to retire early

submitted by /u/Competitive_Pass8370
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/18jl7je/big_new_home_purchase_help_whether_to_sell_or/
Labels:

Comments

Post a Comment

Popular posts from this blog

North Carolina – “One to Buy; Two to Sell”

I realize I will likely have to contact a real estate attorney but also hoping to hear insights and experiences from others! I have a house in NC that I bought by myself in 2009, and paid off, in full, in 2022. I got married in 2023. My spouse and I have not lived in the house as our "marital residence". We have maintained separate residences even after we got married. (That a separate topic!). I am now selling this house. Realtors have told us that my husband has to sign the deed at time of transfer but I am not convinced since the house has not been our marital residence. The realtors like to use the phrase "one to buy; two to sell", which seems like a broad-stroke statement which is not applicable under all circumstances. And of course, the realtors don’t realize the details of my specific circumstances: I purchased and paid for the house in full prior to marriage Only my name is on the deed And most importantly, we have never lived in the house as a marit...
Post a Comment
Read more

Question With Tricon "Pending ID".....

My wife and i, along with 2 other peopl applied to rent a house, and our application says "Approved, Pending ID". Anyone else know what that means? Do we pretty much have the place or are we missing something? submitted by /u/Itskrueger [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1orixqj/question_with_tricon_pending_id/
Post a Comment
Read more

Making offers on houses not listed for sale.

I want to buy a home for retirement. I am looking at lots of options, mostly focusing on the locations that appeal to me. I see lots of Zillow estimates of homes that look like great deals to me. Are these estimates accurate, even though similar houses in the same area that are for sale are usually priced much higher? If so, is it realistic for me to try to make offers to owners that do not have their homes listed? Would a realtor even consider helping me do this? Or, do these values indicate that the houses listed for sale are overpriced, and I should just lowball until someone accepts? Are houses today tending to sell far below list prices, or ??? submitted by /u/chewybrian [link] [comments] source https://www.reddit.com/r/RealEstate/comments/1o4mcon/making_offers_on_houses_not_listed_for_sale/
Post a Comment
Read more