We definitely need some advice moving forward. Thanks in advance !!!
Me and my wife combine currently make $55K a year which will potential go to $70k a year with my new job offer. I'm currently in the background phase. We're both 27 years old.
Also we have 2 free and clear rental properties. An duplex potentially conservatively at market value worth $125k and town-home $135k. In total our grass income per-month is $2,555
We also have 18k in debt. CC, lease cars, few others. That we want to clear up.
We currently renting a 1 bedroom apartment with 1 son and another kid on the way. We need more space.
I'm here asking you guys because none of our family members are financially savvy to our knowledge.
Our next move, is this buy our primary home and we trying to figure our the best way to approach this. Of course we get the FHA loan or use conventional to avoid PMI. Show we just save up a down payment once we clear our debt and go the FHA first time home buyer route ? Or should we save and go conventional ? And keep our properties free and clear to keep that large amount on cash- flow coming in ? And get HELOC's for both properties to be able to pull make just in case ?
Should we take out the equity of both homes and potentially take back $191,000 cash back and cash flow roughly 300$ between both properties after expenses ?
Use the $191K and put 20% down payment on a primary residence, put 5k a piece for each rental for reserves, and put reserves aside for our primary as well ? And keep the rest of the cash for 1 more rental, our self, for emergency funds, and too spend some wisely ?
Any thoughts ? We not sure what route too go.