Sell or keep as rental - Denver
Hi all,
First post after having discovered this site about 6 months ago. Love the podcasts and looking forward to broadening my knowledge and hopefully building a decent portfolio over time.
I have a question on whether I should buy or sell my current home in Denver (Clayton). The home was purchased in 2010 for about $200K (owe $165K) and would sell now for about $325-330K. My wife and I are building new construction (about $425K) and are undecided about what to do with the other home. Our mortgage is a bit under $1K and the rental income would be about $1800 (after paying PM). However, we will be taking a HELOC of about $55K to assist with the 20% down on the new place.
If we sell and net ~ $145-150K, we could use that and our savings (about $30K) to put the 20% down and have roughly $90-95K to begin looking for another rental (or 2?). We would probably sit on the cash or potentially look at other markets as the Denver market is pretty crazy right now.
The only other debt we have is a student loan and we are able to save about $2-2.5K most months, which we plan to use towards properties in the future.
Thanks for any advice and can't wait to read more on the site!
Dan