Real Life Scenario help
I need to play out current sell, refinance, hold scenarios for my current portfolio.
I own 2 homes. I bought them 6 and 3 years ago. I’m 31 years old, single. My first and primary residence is a 2/1 worth $230,000 and I owe $105,000 with interest rate of 3.5%. I have lived here more than 2 years qualifying for the no capital gains tax? The second and cash flowing +$400 a month rental is worth $160,000 and I owe $67,000 with an interest rate of 4.0%.
I’m debating selling one or both houses because of how high the housing market is and the fact both are worth double what I bought them for. The problem is I need to reinvest it back into a home and I feel like I’d just be buying at the top of the market and then what’s the point? I’ve also considered trying to refinance and sit on the money until the housing market dips again and purchase another rental. I would like to upgrade my primary residence to a 3/2 with more land. I prefer to live in a rural area, both houses are in towns but smaller, rural towns. Last thing I have considered is selling both and having $218,000 minus capital gains tax? and having the most money I’ve ever had in my bank account and saying hell ya sweet double. But then what?
On a serious note I would appreciate the advice/ what would you do if you were me. Thanks in advance