All Forum Posts by: Jon Kelly

I'm trying to determine if I should rent out my current Townhome or sell it. What I'd prefer to do is rent it out for long-term purposes as I am 43 and this will pay my future home off when I retire.

I purchased the townhome for 340k and owe 330k after a refi last year. Currently, it is worth 430k+ If I sell I can make about 50-70k after fees. 2 years in the primary home this May 27 and it is in a new area that is developing quickly. I have been a landlord before but years ago and briefly. I don't have any debt besides my car and have good credit (low-mid 700's) but limited savings after recently paying off a card. I am a GS-15 in the gov. and make a good salary (163k) plus 600 monthly from the VA. My current mortgage is $1900 at 2.25%, after speaking to an agent, I believe I can rent it for $2400-2500. I am in a good financial position but in order to pay my home off once I purchase it, I don't want to have to pay an extra 1000k to principal to get it paid off before retirement, which is why I want to rent my current home. In 3 years I will have over $2500 additional monthly due to child support ending and would take a HELOC as a safety net if needed.

Looking to move to Orlando to be closer to friends and family eventually purchasing a new home around 500-600k. I have many questions regarding waiting to purchase a new home in 3 years once inventory increases. Should I rent an apartment or house since rental prices are going up? I'm curious as to which kind of HELOC I need that would allow a refi down the road on my rental should I need it since it is a VA loan-I'm uncertain as to my COE right now.

My big concern is retiring with a home at 57-62 with a paid-for home and believe renting my current place will fill that demand and then some. However, with rental property and a HELOC how hard will purchasing be in 3 years? How are future DTI's calculated with HELOCs; will my VA loan be usable in 3 years or will I have to convert my current loan at 2.25% to conventional?

Sure, I can sell and hold the money, or just jump in the market which I'm not particularly a fan of (especially since I’ll $2500 back in 3 years from support), but is renting out my place worth it with the amount of equity I have if I sell it? I have many other questions. Should I sell/rent now or wait to watch the rate hikes and how they impact the market? ETC. I can go on.

Thanks again.

Thanks, Jon.  

I'll keep trying-hence this thread.  I have found it rather difficult in general though as the individuals I've reached out to (the past month consistently) don't want to help you one-on-one unless it benefits them.  Agents want a sale and everyone only seems interested in how you can help their bottom line.  

Don't get me wrong, I'm extremely grateful for forums such as this that provide feedback and are certainly open to criticism of all kinds-I've learned a lot.  But as a new person trying to get into investment or at least looking for a discussion, it's apparent to me, that it's not nearly as easy for a newcomer than perhaps someone as yourself who is more established.

Again, thank you for your feedback.