All Forum Posts by: Brynne R Magaziner

I'm still in the learning phase but wanted to know what I should be researching. Here is the scenario:

We have lived in our primary home for almost 7 years and have quite a bit of equity in it. We put a lot down and the home has appreciated in value by at least 100k (don't have an appraisal, but based on similar homes, I know this to be true). I'd like to keep the primary home and rent it out while we purchase a second home with a basement rental for a house hacking scenario. Based on comps, a renter will definitely cover the mortgage from the first house with some additional cashflow ($500+ per month).

What is the best way to pull equity from our first home to finance the second? Does the math make sense? What should be my next steps? 

I have a dream of buying a dump of a house, rennovating the entire thing and adding a basement apartment that can be rented out to help cover a large part of our mortgage. Our area (DC metro) is VERY expensive and I think that is the best way for us to afford the house we want. Since we would be designing the home, longer term, we could design the house so that it would be easy to add interior stairs and have access to the basement as a space for our use. In my opinion, it is a win-win. We can get a great home and have someone else pay off a large chunk of our mortgage.

On the other hand, my husband thinks "I'm not going to have strangers live in my house with my wife and children." 

I've explained that it's just like living in an apartment building (which he has done) or a row home (which he has also done) or a duplex (which he has also also done). I've explained that we get to run background checks on the potential tennant. I've explained the financial reality that we cannot afford a mortgage on the house he would want in the area that I want. 

He can't seem to get past "I'm not going to have strangers live in my house with my wife and children." Even though that is NOT the case.

Is there anyone who has been/is currently in this sort of rental/living situation who can speak to the day to day realities? Any advice to help him get past that mindset?