Here’s the skinny:
I own a home with a 15yr mortgage 3.25% rate with monthly payments of $2100. I still owe $200k on the home but could potentially sell for nearly $400k, but at the very least $350k. I would need to spend approx $10-15k to tidy the place up and finish up old lingering projects.
Now, I’m not I love with the home and the area is, meh. I want to buy a fixer in a nicer more desirable area for an asking price of $350k but I could potentially squeeze to $320k(maybe). I’m estimating $20k in repairs. I would finance this with 20% down (from home sell)and 30yr mortgage, which will bring my payment a below my existing mortgage.
I want to note that I’m still undecided on long term residence and I’m not convinced that I will be spending my retired years in the PNW.
Should I pull the trigger on this idea or should I just cash our refi to a $350k loan with a 30yr mortgage? Thanks in advance. I really appreciate everyone in the community.
2019 might be the best time for you to put your house on the market. Especially if you’re on the fence about selling this year or next.
Home price growth slowed in the second half of 2018, with fewer buyers entering the market, at least partially due to rising interest rates issued by the Federal Reserve.
Here are four reasons to sell your house in 2019:
- New buyers are still entering the market.
- Interest rates are still on the lower end.
- You have high equity.
- Selling now will be better than waiting till 2020.
Why not start looking now to see if there is a fixer in an area that appeals to you? This gives you time to finish up old projects on your current house and see what is on the market.
@David Pilkington Great points made! I also feel that the market will slow in 2020. Ironically enough my wife is a Regional Property Manger for the biggest multi-housing developer in the U.S. and she is not interested in investing in real estate at all. I find that to be odd. Nonetheless, I have recently watched her developers and study their every move. I spoke to one of them during a company party and one thing that stuck in my head was, "watch for all of the cranes, it's a sign of too much development at the same time too late in the game". I wasn't really interested in REI at that time, and thought the comment was odd. Now it all makes sense.
@Theresa Harris thanks for the reply. I don't know where my wife and I would eventually end up. We currently have stable jobs that pays well. I really want to sell our home and rent for a couple of years while I continue to buy investment properties, but we have too many rescue animals that we care for that I'm sure a landlord would not approve.