We purchased a duplex 2.5 years ago in a great school district HCOL area. It’s super private on 5 acres. Interest rate is 3%. We get $1000 a month from our tenant and our escrow payment is $1400 a month.
We have been told by multiple realtors and comps that if we sell today we will make around 180-200k to use as the down payment for our next home.
We recently got prequalified with a 6.3 interest rate and have been looking to build or buy. With this interest rate and around 150-200k down we are looking at a mortgage payment around $3000 a month. We want to stay within 25-28% of gross income for our principal interest and taxes.
Our current living situation is a two bedroom, one bathroom and the kids don’t share a room. We tried and it didn’t go well. So we sleep in the living room on the pull out couch.
We bought a fixer upper and most of our cash is going to major upgrades such as boiler, roof, floors.
If we stay here we will have to plan to convert one of our garages into another bedroom. We will still have another garage.
We are not able to easily convert the entire duplex into one house because there are utilities and garages in between apartments and we are a slab. Also if we stay here we will need to plan to replace an above ground septic system that will be around 30,000 in the next 5 years, add mini splits and renovate garage and maybe add screened in porch. Need to clean up our landscaping as well.
We feel stuck because of this amazing interest rate and really low monthly payment and very competitive housing market.
This house has been a blessing and a major weight at the same time. Should we stay here a few more years while kids are young? Or sell and go rent for $2500-3500 a month for a year or so until we find our next home?
Submitted April 28, 2024 at 08:39PM by Affectionate-Gap8071 https://ift.tt/drn0935
