Updated over 3 years ago on . Most recent reply
Upgrade primary residence (partial rented) now or wait d/t market
I am stuck at a what to do, looking for some unbiased opinions. I have a 3 story townhome in Denver worth $440,000 with $250,000 left on my loan (2.5%, 15year. $2300/m total payment). I am currently mid-term renting the condo while out of state for work bringing in $3000 a month ($500cf/m after utilities). I am considering upgrading to a nicer 3 story townhome in the 600-700k range. Ideally paying 3k-3.5k/m mortage on 30y @ 5.8% with the intention to refinance down the road if rates improve. I believe I could still rent it out midterm for 4k a month, basically being the same cash flow, but a much different loan. It is still my primary and I live there sporadically, will be back full time in less than a year.
My question is does this make sense to do now or should I wait to see how the market moves. I believe that it makes sense to make the move now regardless of the market since I can cover the expenses with my income and down the road in Denver this should be a $1M property. I have worked out all the numbers I just am looking for any insight or opinions. I am new to real estate investing so trying to learn and manage risk! Love the community, thanks for your help!