Refinance current house or move to new residence

[Jean Pierre Jabo]

my wife and i bought a unit last year in 2024. home is a 4 bd 2 bth, comes with a detached ADU unit thats 1 bed one bath with separate backyard that we currently rent for $1545 longterm. our interest rate is high, 7.1%. our mortage is about 3600 but adding PMI and other costs its total of $4k/month. we both make a combined income of $220k.

should we try to move to another primary residence home about $480k and rent out our current main home for about 2300-2400 (fair market pricing for the area). or should we stay in our home and refinance and live there for a year and then move later?

[Caleb Brown]

Quote from @Jean Pierre Jabo:

Quote from @Caleb Brown:

What is the reason for moving? Holding the place doesn't make a ton of sense short term, you'll be losing money monthly after accounting for costs. If you want to move sell the house and move. You could explore refinancing but that would be a conversation with a lender. With you buying in 2024 I am not sure you can refinance yet, keep in mind there is closing costs with refinancing

 I can it’s been over a year so I can refinance. Why sell. lol i would lose money since I haven’t hold on to the property for so long. I want to benefit from appreciation and acquiring more units. Also I should add I want to move and stay in the same city. 

 I don't think keeping this and moving out will help you acquire more units unless you are banking on appreciation (which is guessing and not a quick perk). I would just hang tight in that home. Still explore refinancing but actually find a deal that works instead of being way in the red with trying to rent out this home.