Sell or keep my 2 family rental? Need guidance

4 Replies

I've owned 2 family home for the past 5 years. We lived in one of the units for the first 4 years. We moved out of state and are currently renting and looking to buy a new primary residence. The numbers on the rental are as follows: Monthly expenses including mortgage: $3,000 Monthly rental income: $4,100 Interest rate: 3.4 percent Potential Equity: 200k My question is... should we sell the rental property and use the 200k equity towards our new mortgage so that our payment will be lower...or do we try and keep the house but have a much higher mortgage payment and potentially have to pay PMI?

What are your long term goals? If it’s to own a portfolio of rentals I wouldn’t sell. If it’s something else you may want to.

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I would love to own a small portfolio of rentals, just not sure I can float this rental and have enough for a down payment on our "forever" house. Any creative financing ideas?

Since it does not sound like you are a driven investor and you are trying to make a decision between personal and investing there are many reasons why you would be best to sell.

Long distance investing has issues you are likely not prepared for, the property appears as though it will be cash flow negative especially after refinancing and your personal home appears to be your priority.

It is probably best if you unburden yourself of the property at this point in time.

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