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Your return on equity is going to be pretty low. Assuming 20% down when you bought + $400k in returns + the principal you’ve paid off over 7 years, you’ve got well over $500k in equity. Let’s say you’re current monthly costs are $2k so you’d make $1.8k/month = $21.6k/year which is only a 4% return on that $500k.
Incredibly helpful approach and discussion. We're ok in terms of savings but that's something good to keep in mind
Rent it out and also borrow money against the home to buy your new home. Win-win
Cash out refi before you sell to pull some money out.
Sell. Don’t lock up $400k for $3800 a month in gross rent.
Even if someone sells now, it’ll be at least a month before closing. I expect a lot more certainty around vaccines to be known by then and ease any doubts you have about how long covid will continue to drag the economy. So I’m not bearish on stonks
Property values in the DC area are relatively stable and generally have continued to appreciate so it's worth renting or Airbnb.
This is helpful. Just need to figure out how to apply for a new mortgage and show we can make mortgage payments back in rent. Thank you!
Subject Expert
Your new property wouldn’t be a second home. It would be your primary home on your application and you would rent your current home. The lender may want to see that you can afford both. Is that do able for you ?
Subject Expert
I I have 5 houses and have kept most I previously lived in. Each has appreciation d have decent interest rates. I rent them out and it more than covers all costs plus extra cash.
Make sure you have a buffer for unexpected costs and vacancies. If you think the house will continue to appreciate then keep it for sure ! If you think it’s most done then may be time to take out the cash and invest it elsewhere (stocks, another rental property I’m in your new local area, bitcoin, you do you.
We may be able to get closer to $5500 a month with Airbnb
We could leave it sparsely furnished and get cheaper mattress. We're in Arlington 10 minute drive to monuments