My husband and I own a small home outright and would like to upgrade in the next couple of years. I would like to keep our current property as a rental property, as it seems like the rental payments could cover a good chunk of monthly mortgage payments for the new home and would be a good investment as well. However, it would mean taking out a 400k mortgage for the new house.
Alternatively, we could sell our current home (value about 320k) and then only take out a small loan for the new house.
Basically, which is the better option? what am I not considering here? Is it a bad idea to go into greater debt for the new home? Or is that badness offset by the potential long term gain of owning an income-generating property? We do have student debt, but we’re working towards loan forgiveness and have no other forms of debt.
Thank you!
Submitted July 30, 2020 at 08:23PM by megara_74 https://ift.tt/2D48bsH
