All Forum Posts by: Raul Fernandez

My wife and I (with our new 2 month old child) just purchased a home and are torn on what to do with our 2 bed 1 bath condo.

Our new mortgage starts around $2200/mo due to a 2-1 buydown on the interest rate we were able to do, so it increases slightly each year. We put down 20% on the downpayment which depleted a large chunk of our savings.

There is still 60k left to pay off on the condo at a 4.3% interest rate. We would be profiting around $500/mo if we were to keep it as a LTR but could make around 120k if we were to sell now. If we paid the condo off it would cash flow around $1500/mo but that would take a few years of grinding

Our goal right now is to replenish our savings via one of two options; 

1. Keep the condo and slowly replenish our savings as we work towards paying the condo mortgage off to unlock the most cash flow. Hope no big expenses come from the condo or home during this.

2. Sell the condo and quickly replenish savings by putting ~50k as savings. Use the rest to do a mixture of investing in ETFs,  purchase 1 or 2 rental properties or put some back into upgrading our new house.

Both of our cars are paid off and we don't have many expenses as we are both pretty frugal. We would currently be saving around $1200/mo just from our salaries not including money from the condo. On top of that, we will still have around 10k in savings after purchasing this home.

Would it be worth it to keep the condo as a rental or should we just sell and diversify our money a bit more? Any advice is appreciated!