Hi All! First time posting on Reddit. Been a long time lurker but I’m in a tough spot and need some advice. My wife and I currently own our home that we built in June 2018. We just refinanced it two weeks ago to drop the interest rate and PMI but this past week while walking our dog there was a shooting about 50yds from where we were at the time and the wife no longer feels safe. We’re in a nice developing neighborhood in the Denver suburbs but are close to some less than stellar neighborhoods so crime is creeping in. So on that note, here are some facts:
- Original price was $434k
- closing costs between the two financings were about $10k
- Interest paid to date is about $27k
- put about $10k into the home -404k left to payoff for refinanced mortgage
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looking to list for about $475k based on comps, using a realtor. This would net us somewhere in the $35-40k left over.
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looking to buy another home in the low 500s
-205k annual gross income with $50k+ in variable comp combined - have about $10k in credit card debt we want to pay off with our YE bonuses. We use our cc like a debit card. This is mostly from holiday spending. Not normal for us to carry this balance. - also plan on paying off $21k of student loans to free up about $570 in monthly payments with the bonuses. - keeping our existing house and renting, and paying off the credit card and student loans will require us to take a loan against our 401k for about $15k for the down payment but plan to pay back within 12 months, which is realistic in ourbudget - we’d break even on rental income and mortgage payment on the existing home based on info I’ve gathered. At worst, lose a few hundred a year.
My concerns are that I don’t want to continue to remain in debt to rent out our existing home but I don’t want to pass on additional income and this investment in the home down the road. I’m unclear if I should be generating income right away or if breaking even on the rental property is fine for the first few years. In my mind, renting the home, buying a new home, paying off the credit card, and paying off student loans all in a 12 month time frame is realistic based on our income. I just don’t know if the stress over the next year or so is worth holding onto the property.
My gut tells me if I can swing it, swing it. Would love to know others’ thoughts on the situation. Sorry for any errors, I’m on mobile. Let me know if any other info is helpful and I’ll add. Thank you in advance!
Edit: formatting, additional info.
Submitted February 04, 2020 at 10:45PM by Jazeek36 https://ift.tt/31oqXTq
