Advice on Navigating My Next (2nd) Real Estate Move.

[Brandon Bell]

I currently own a 2BR/1B in Shawnee, KS, which was my primary residence in 2020. It’s under a conventional loan at 3.5% (woohoo!).

In late 2023, I moved into a 3BR/1B in KCK, which is now my primary residence, but it’s under a 7.5% conventional loan (ouch). I'm considering moving out and converting this home into a rental.

Additionally, some neighbors are looking to sell their townhome, which could be pose an off-market opportunity. Both properties are in a market I like, and I’m encouraged to expand my portfolio.

With many paths to consider, I want to make the best strategic decision. I have a good amount of cash parked in a HYS and equity in both homes (more in the older one).

What’s the best way to seek guidance on my next steps? Any advice would be greatly appreciated!

[Jules Aton]

I wouldn't pay anything extra toward 3.5% mortgage and would invest the cash you are holding in HYSA unless you are older and an underperforming but safe bond type investment is part of your financial plan. Depending on how much you have I would probably use HYSA money for either TSM index fund and/or down payment on neighbor's place if you can get a good deal and continue chipping away at the 7.5% mortgage which actually isn't all that high historically speaking. I like that you are investing in the area where you live and know the nuances. Best wishes.