Updated over 2 years ago on . Most recent reply
Should I sell or rent it and use HELOC to get my second property
Hi, I am located in Southern Utah.
Recently, with some life updates, I have considered upgrading to a bigger place.
Right now, I own a 3 bed 2.5 bath townhouse with equity of around 149K.
If I rent it out as a whole unit, it could be about 1400 - 1600. It will give some positive cash flow for sure.
The house I am looking at is about 360K. If I used HELOC to pay the downpayment, my monthly mortgage could be about 2400. I am thinking about doing house hacking with the second house.
How should I choose? Any suggestions and thoughts are welcomed. Thanks,
Most Popular Reply
Positive cash flow on the first is important. Getting a HELOC before you move is vital. So is having a plan to pay back that HELOC, and plan on it getting to max interest rates. If you house hack the new property, that would help you cover the HELOC payment, too. It is so important that you are positive on cash flow so you can outlast any future recession.