Sell or Rent current home to buy new home
Hi Y’all!
So my wife and I currently own a condo, we’ve owned it now for six years. Our family is growing and we want to buy a new home. We were originally planing on selling our current home and using the equity earned and put it into the new home has a down payment. Now the wife wants to keep it, take equity out (refinance) for the down payment and rent the condo out.
So here is a break down of everything:
Current condo:
- Pay of is $160k
- Recently Appraised for $350k
- Our current debt is $40k
- Cash in the bank $50k
- Current Mortgage with ins, HOA, PR is $1500
We can probably rent the place out for $2200-$2500. What should we do?
I would rather sell because we can use more of the money for a down payment. If we rent and take equity out for a down payment, our payments will go up to about $2000 a month and the equity we would get would be around $80k. The wife wants to keep and rent it. I think it’s a bad idea.