All Forum Posts by: Taylor Cade
Taylor Cade has started 1 posts and replied 2 times.
Post: Condo Equity... What Would You Do with It?
- Chicago, IL
- Posts 2
- Votes 0
Thank you for all of your replies!
See what I mean? This isn't an easy decision. Lol. Here's another wrench- the area that my condo is in right now is a slowly expanding neighborhood. I have no doubt that in 5-10 years my home will be worth more. I've been struggling with the idea of refinancing and holding on to it- when I could sell it and probably make money faster (and save money!) by paying off my debts, buying a multi-unit home, and living in one unit . And I'm nervous about refi-ing the condo, renting it out, and buying a multi-unit bc I'm not sure if I would qualify for a mortgage for the multi-unit because our student loan balance raises our DTI.
In a perfect world, I would hold on to this place, refi, buy a multi-unit to rent out, etc. BUT I'm not sure if we would be able to obtain financing this way. I know that our DTI and credit scores are everything when it comes to real estate investing.
Have any of you guys been in our shoes before?
Post: Condo Equity... What Would You Do with It?
- Chicago, IL
- Posts 2
- Votes 0
Hi BP Family!
I'm currently living in Chicago in a condo that I bought almost 5 years ago as a foreclosure. I'm trying to figure out what my next best move would be, now that I'm trying to get started in real estate investing.
Here's the deal- I have a ton of equity. I really lucked out (bc I had no idea what I was doing when I bought it lol) - I know that I have at least $50K of equity in this place, if not more.
BUT... my hubby & I are also in debt (cc's, cars, loans, etc- not including a ridiculous amount of student loans. sigh). I'm an educator & my hubby is a filmmaker.
We have been going back & forth on all of our options. Here are a few:
1). Sell the condo, get every penny of equity (upwards of $50K), use most to pay debt- rent for a bit, and then buy an investment home (I'm thinking a multi-unit to live in one and rent out the other(s))
2) Cash-out refinance the condo, use cash & current income to pay off debt. Start saving to invest later.
3) Stay in condo, use income from work to pay debt, wait to refinance until most of debt is paid off & then we can use most of the equity to invest in real estate.
Your thoughts are appreciated! Please be nice- we made some money mistakes, but I can guarantee you we won't be in this place forever!