So I feel like I am stuck in the middle and don't know what would be the best thing for me to do. Here is my story and the dilemma I am in, I hope some of you are able to give me advice and guide me to the right decision!
So 2.5 years ago I bought my very first ranch style house for $210,000 here in Northern Colorado. It was a brand new construction home with all the bells and whistles, like granite countertops, stainless steel appliances, valued ceilings. It is a patio home (maintenance free living) 3 bedroom 2 bath home with a master suite, unfinished basement. Total sqft is 2,600. It is in a great location right across from a great school, also walking distances from a rec center, park and basement fields.
My plan WAS to refinance my personal home into a conventional loan and then go buy a duplex, 3 plex or 4 plex AND then make my personal home into a rental and rent it out because it is in such a great location and I can get top dollar for rent. But the situation I just ran into when I tried to refi is that I wrote off to much on my taxes :( So I only have shown that I made $65,000 total in both years plus my debt to income ratio is a little high right now (working on getting that down currently) So I am in a possession where I can't go this route until I show more on my taxes and get my debt to income down.
My second plan is to possibly sell my home, get the $70,000 (after I pay a $23,000 tax lien and closing fees, etc.) as my house would sell for around $290,000 and get the equity out and then go buy a duplex, 3 plex or 4 plex. The duplexes, 3 plex and 4 plex are selling for around $400,000 + in my area.
What would you guys do in my position? I know that I have read and heard to NEVER sell any of your properties but I feel like it might be best in the situation that I am in to take advantage of the equity in my home, pay off my remaining debt and then live in one of the units and either have most of my mortgage paid for or have it all paid for.