Considering purchasing new home and renting current. Best financing stragety?
Hello,
New to REI here and I am considering purchasing a new primary residence while renting out my current home. I am hoping to get some direction on the best strategy for my situation.
Current home in a LA suburb- $700k rough appraisal with 5 years and $116k left on the mortgage @ 3.375%. Other comps rent for about $3500. If I were to rent this now I would cashflow about $300/mo.
I have been looking for a new primary residence around the 1M range but only have 5% down at the moment but would be able to save the full 20% down in about 3 years. I am afraid of missing out on an appreciating market but also apprehensive of PMI (probably from my Dave Ramsay-esk upbringing on finance)
Gross income $330k, 800+ credit, 0 debt outside of mortgage
Am I better off just waiting until I have full 20% down? Get in with 5% down and eat the PMI? Heloc / Heloan options?
I find myself in an analysis paralysis and would love some perspective. Thanks for your help!