In 2011 I bought my current house for 86k. It was a short sale, a steal, and I got a low interest rate because 2011. Then I got married, saved up money, and this year we are buying a larger house for our growing family. We are lucky that we have a 20% down payment to put on the new house without having to sell my old house first. The original plan was to sell my current house after we renovate the new house and move in, but now I'm not so sure. My current house is near a military base and a college. I'm surrounded by renters and could take home more than my mortgage. Or I sell my house and put the check in investments and focus on my family without all that renter bullshit.
My current situation: Assets:
- 73k in merrill Lynch Managed account
- 20k in liquid cash
- we fully fund our retirement accounts every year
- I'm not going to go into detail on expenses, but according to mint we average $800 extra each month.
Debts:
- 57k Owed on current property. I'm in year 7 of a 5 year ARM so the interest rate is 4.0% it started off 2.75%. I was planning on listing it for 125k, I'm not taking less than 115k
New house:
- 145k homestyle loan (house has foundation issues) 5.65% we intend to refinance once renovations are complete.
- we want a new kitchen and possibly other things before we move in $20k? Perhaps I'll finance some of it on a 0% interest credit card. we dont need a new kitchen though.
My current house could probably sell for 125k, or 115k at the lowest, Which would leave me about 60k after it sells. OR I could rent the property for $925. There is a similar property going for that amount in my neighborhood, so thats what I'm basing this off of. My monthly mortgage payment is appx. $600
I almost certainly would use a property management company. We both work and don't have time to deal with renter bs. plus I've never rented and have no idea how to do this. So they would take a cut as well. I heard from a podcast that it's 10% so thats only leaving me with $225 a month more than the mortgage.
Everyone we talk to says rent. But I'm so reluctant to do so. A few years ago, there was a bad renter across the street. They filled the house 3 feet deep in trash and left their dog there without food or water for a week. It took the landlord 5k to get the house back into rent-able condition. And they were underwater on their loan at the time too. That kind of financial catastrophe is just horrifying to me. Stocks seem much safer. Should I rent or sell this house once I move?
Submitted April 30, 2018 at 09:59PM by Overthemoon64 https://ift.tt/2w6gVui
