I did some research and looks like since everyone's situation/location/market is different, couldn't find a viable solution yet. So I'm opening a new discussion.
I currently have a townhouse in howard county MD with tenants where the lease ends in July. Due to recent new job, I had to relocate to Fairfax VA and renting apt for now. This apt lease ends in October. So there's brief timeline.
Here are the current numbers.
|VA Apt Rent||1,800.00|
Numbers aren't bad, but here's my dilemma and I need some advice or opinions. I would like to move out of apt and purchase a property in Northern Virginia. House price is comparably higher than Maryland. So, with that said below are my options that I'm considering.
1. Keep rental income flow, pull equity and purchase property.
2. Sell current townhome and use sales proceeds as downpayment for new home.
I put together some numbers and if I were to purchase 450k property, there aren't much difference in terms of net income. It's just more loans at the end of the day. I guess it's between 1 loan vs 2 loans but with rental income with higher LTV.
What are your thoughts on this? What would be a wise choice?
@Steve Lee I vote pull out the equity and keep the current property.
@Steve Lee , I used to live in the area, base on your loan amount, the numbers may be good but base on the market value and the possibility to repositioned your equity in something more profitable the numbers are not so good, I really not expect that prices to go higher, there are more options to put your 200k equity to work for you. maybe a multifamily property in a better cash flow market or be a passive investor on someone else deal
What sort of rates do you have on your existing loan? Also what is the principle amount that mortgage payment is based off of? Perhaps there is a chance to restructure, keep the mortgage payment around the same and still obtain the money you need for a down payment. What would you have to lose at that point? Why give up a constant stream of income that is also building equity for you?
Have you talked to a bank about refinancing to see what your new mortgage would be on the townhouse after you refinance? If you do not like how the numbers/cashflow look after a refinance, then I would suggest selling and taking the profits to roll into your next deal (preferably multiple units). However, if the property still cashflows well and you have a good system in place for property management for the existing home, then why not keep it and let it cash flow while you use the equity for another investment.
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