We bought our home in 2012 and now have about $325,000 in equity. We are planning on being in our next home for 5 years and we are stuck on whether we sell our current home and buy our next home for cash or rent our current home and buy the next one with money taken out for our down payment.
After taking money out for the 20% down we would owe about $215,000 on our current home. Mortgage would be $1300 and we can get $2200/month from rent
New house would be in the $450,000 range so new mortgage would be $1800
We only make $70,000 a year combined and while I like the idea of appreciation gains in a rental property I don't know if it is worth the risk with our limited cash on hand if something were to go wrong.
The other option is to buy a house in cash, then in 5 years we would have better cash reserves to rent it out, plus we would benefit from the full rental income as positive cash flow.
Submitted September 06, 2021 at 09:16AM by swaldalot https://ift.tt/2YlrtnB
