Keep rental income or sell?

[Jim Halpert]

Reaching out to find advice for my best course of action. 

I have a duplex I renovated and have both sides occupied. After I pay my mortgage I bring in 1400$ a month . I’m currently renting myself because of well the crazy housing market . I really want to get my own home to live in and renovate some to have a “home base “ . 

Should I continue to collect rent and try to secure a secondary/vacation home loan. Or sell the duplex and use the profit to purchase .. ? 

[Todd Rasmussen]

@Jim Halpert

You should absolutely continue to rent, and why wouldn't you apply for a primary home loan?

[Jim Halpert]

Quote from @Todd Rasmussen:

@Jim Halpert

You should absolutely continue to rent, and why wouldn't you apply for a primary home loan?

I have a heloc loan under my mortgage which is considered a primary residence . I don’t have a ton of mortgage experience as most of my deals were cash

[Angela Venger]

I think you should continue to rent. At least you have an asset now, after you sell your duplex and buy a house for yourself, you will lose your asset and get a liability. Just keep saving and have your renters to pay for your new home.  

[Todd Rasmussen]

@Jim Halpert

You can get a primary home mortgage on your new place. Loans are written based on your intentions at the time of application so you can absolutely get a primary home loan for your new place and keep your existing loan on the duplex.

[Ryan Leonard]

Hi Jim - I agree with Todd. Because you would be living in the home, you should be able to get a primary loan on the purchase. Then, you can take advantage of a lower rate while still renting out your current duplex. If you have a cash-flow-positive property that doesn't give you a big headache, I would definitely recommend keeping it. You could always roll that equity over into an investment property, but I wouldn't suggest rolling it into your home (if you can afford a decent place without it). And if you fix up the home like you're saying, you could be looking to roll quite a bit of capital into a future investment between both your home and duplex, assuming that's something you desire. 

[Caleb Brown]

I'd continue to rent for now. See how the market is by Spring time then reassess. If you can get a primary loan to buy do it, reach out to different lenders to see. 

[Jim Halpert]

Quote from @Caleb Brown:

I'd continue to rent for now. See how the market is by Spring time then reassess. If you can get a primary loan to buy do it, reach out to different lenders to see. 

Thanks for the responses, seems the majority is in favor of keeping the rental income . My only thought was to sell and use capital to fix and flip( after two years to avoid capital gains ) calling it “my home” . 

[Conner Olsen]

Quote from @Jim Halpert:

Reaching out to find advice for my best course of action. 

I have a duplex I renovated and have both sides occupied. After I pay my mortgage I bring in 1400$ a month . I’m currently renting myself because of well the crazy housing market . I really want to get my own home to live in and renovate some to have a “home base “ . 

Should I continue to collect rent and try to secure a secondary/vacation home loan. Or sell the duplex and use the profit to purchase .. ? 

 I would look at your return on equity. How much money is in the deal and what is the return on that? If you can get a better return elsewhere then you can sell it and reinvest.