All Forum Posts by: Dong Yan

Hi @Dong Yan, 

You posted a very good and common question. I always recommend keeping your home and renting it out in most circumstances and buying a new personal residence. You can utilize a low down payment program to purchase your next home and build equity in two homes during this high inflationary market. There could be a benefit from selling your home, since I'm sure it's appreciated a ton and you can keep the first $250k in equity tax free if single and $500k if married. You can then use that money to purchase your next primary residence and several investment properties. Please reach out and we can run different scenarios to help you make a decision.

It's all about the local economics! Specifically, supply and demand. 

Increased housing demand comes from population growth. Job growth drives that population growth. Job growth alone isn't everything, though, we also want economic stability. Economic stability is heavily driven by diversification. That is, is the local economy heavily dependent on one industry, such that a downturn in that industry will devastate the local economy? Or is the economy diverse such that it can weather a downturn in one industry?

Those are the types of things one looks at when first researching a market. 

Hi @Dong Yan, I am not going to advise on whether you should change schools since that is a personal matter.

If the only comparison is between renting out your current residence and buying a new primary and keeping your primary and buying an investment property, I would go with buying a new primary. They get better rates and it seems like you really want a low rate.

Rates are still historically low. Depending on your scenario, you are probably looking at rates in the 4s or 5s. Today, I just locked a loan at 4.375% so the rates are still very low. It all depends on your scenario though.

Hope this helps! Let me know if I can be of any assistance.

Hi Stella,

It really depends, because criteria changes a lot when you're buying for personal reasons vs investing. There are a so many factors you need to consider, such as:

• What is your primary home worth? How much rent will you be receiving? What is your return on equity? Could my investment be moved elsewhere to a higher performing property?
• What is your replacement property cost? How much will your down payment and payments be? Are you comfortable with the payments?

**Investment Property: this can go in so many ways. Hard to say without requirements/budget/goals

It seems to me like you have a lot of options right now. I would suggest starting by running your numbers first on your primary home to see how much rent you would be receiving and running numbers on your replacement property. If the numbers don't make sense for you personally/financially then maybe it would be a better move to just stick to purchasing another investment.