I currently own a Condo worth ~360k with ~100k in equity. I am looking to buy a home for $800-$1M (DC Metro market) in the next 3-5 years and am wondering if I should aim to keep the condo and rent it out or use the equity to afford the $160-200k down payment. I only have $7k in savings and am also saving for a ring and wedding.

like
Posting as :
works at
You are currently posting as works at

$7k in savings, working toward a ring and a wedding, but want a $800k-$1mm home doesn’t seem like it adds up

like

Bingo

Do you know if your condo rules have a rental cap? I have served on my board and own a DC condo and I have had issues when on the board of individuals thinking they can rent and we were already at rental capacity for the building. We have the cap partially to protect owners when selling for future buyers to secure loans. Some loan providers won't give loans to those who have a high rental building.

like

No cap on renters from my HOA! I could probably rent for about $2000 and my mortgage + HOA is $1800

like

Without knowing how much you earn and spend, it is impossible to give you a good answer

like

I'd sell in your situation. You're barely cashflowing with those numbers

Also, at the rate it's going, you're barely going to be able to afford a SFH in DC. Maybe condo or rowhouse

like

That's great! I would continue to monitor that if it changes. I would also suggest considering if you want to manage the rental yourself or use a company to do that for you. It will eat into your income but could give you more peace of mind. Finding and vetting renters from what I heard isn't always easy.

I was in that same situation when we moved from first home to second but had to sell to make the down payment on #2. You could borrow against the condo equity but you probably won’t get that much. If you want to keep #1 as a rental you need to save a whole lot more for the next down payment.

I make $120k and gf recently moved in so I’m only paying $900/month for mortgage so I can save aggressively. No car payment, $200/month student loan payment

OP - does your gf plan to contribute towards your new house? What is your combined income looking like?

How much cashflow? Mortgage + hoa + repairs + property manager

Yup you’re not going to be able to afford that house. Also talk to a loan officer to confirm your debt to income ratio

Also - be skeptical of the loan amount you get approved for. Brokers often approve for way more than a buyer should spend. You’ll need to have cash on hand for expected and unexpected home repairs/maintenance, and you never know what life events can come up (e.g., we have 8 weddings this year and none are in our home city). Be conscious of other expenses you could have down the road (e.g., daycare if you want kids).

We could have gotten approved for a 1M home, but bought one in the 400-500 range because we wanted to be mindful of additional expenses (buying a car, kids, etc.). We are in a LCOL city though, so it was easier to find a lower cost home.

Related Posts

I'm looking for a part-time job in HR, preferably remote and if possible at my own time... I know it may be too much to ask but I'm currently working full time and in need of additional income.
Anyone know if something like this is available?
Don't need benefits or perks but definitely additional earnings.

like

How do you guys invest on gold? Is it just buying the biscuit or do you invest in their stock/ETF?

like

First time home buyer here, soon to be shopping for morgage.
If you have walked the path recently, can you please share the interest rate and lender name? Thanks!

like

1031 exchange question - if I don’t identify a property within 45 days , can I get my funds back or do they hold it for 180 days?

like

For partners with kids, what level were you when you bought the house you planned on raising your kids in? Did you buy based on future income (e.g., I’ll be X rank eventually making $Y so I ...

like

Who is thinking about retiring in a low cost of living country? This can dramatically change the math for retirement savings and allow you to work for far fewer years.

like

Business ideas to start in new york? Im 21, 16k is my capital. I also can start a business in a less expensive country (Dominican Republic) I just need some ideas!

funny

How did you get started investing in an intelligent way?

How's everyone doing? surviving crypto winter?

like

Ranking in terms of home price / average income of residents for the peninsula cities? Trying to buy a home.

like

Do not switch in FOMO, if you are able to save around 30000 inr per person after expenses. You are good

like

looking into rolling old 401k into a Roth IRA. I just graduated from MBA and therefore have only worked a few months in 2022. Am I correct in thinking that the taxes I pay will be lower than if I did this in any other year where I worked the full year? Any other drawbacks or things to think about?

like

Deloitte people, is that true you pay the AMEX annual fee instead of the firm pays for you?

helpful

Please help me calculate the total in-hand salary.

Kindly suggest some tax saving schemes as well.

Post Photo
like

What people think it's like being a realtor vs. what it really is?

like

@gourmet investments pvt. Ltd.

Is Syncing Mint with checking and saving account safe option for wealth and budget management?

Anyone know anything about the corporate action / offer by SCH to buy off IPOE shares? Any context / guidance is appreciated! Not seeing any news about where / why this came from, but assuming it has to do with the May 27 shareholder meeting / vote to close IPO deal. Little bit of a newb - is this typical?

like

This thread is awfully quiet today for my crypto portfolio being up 7%. What’s going on? Is this a dead cat bounce?

like

I’ve been holding myself to wait until winter to look for a house purchase. Heard the house prices go up in summer due to ppl relocate for schools. Is that true? Any advices ? (Dallas neighborhoods)

More Posts

What are your judge’s policies on applying to firms that have matters before your judge?

like

Anybody else had an interview with Guidehouse last week? Have you heard back?

like

When the Velveeta takes ahold of you…

like

Looking for Canadian Healthcare focussed consulting practices currently hiring. 7yoe clinician with an executive degree and some public service experience.

Going to Cancun next weekend. Where should I eat and what should I do?

like

Why’re all FSO practices hiring data and analytics people when FSO already have a DNA practice? Is DNA only a higher cost Cognizant or Tata?

like

FB fam: what's a second year Consultant Deloitte Digital make? At best, at worst.

How does your company run others social media accounts? Do you use your personal fb account to connect to a social media platform? Is there a single login everyone shares? 🤔

like

Currently interviewing for a Product Ops & Strategy role in the US. Wondering if any of you held / do hold similar roles at Google - can you explain what you do on a daily basis? & Any tips for the technical interview? Thank you!

like

What is the salary for Video editor with 9 years of experience?

like

Hi, does anyone have any good resources for reviewing deal/fund documents for tax comments? I’m more junior and am often thrown documents to review with little guidance. Does anyone know if any good CLEs or other resources that could be helpful in helping me to better understand the big picture when reviewing documents like this?

like

What’s the typical salary for a pharmacovigilance manager, with a PharmD? I was just offered 115,500 + 12% bonus.

like

how is ANSR+NAB? is it 5 days work from office or hybrid mode or complete wfh.

like

Has anyone sold their home with Redfin? Is there an agent you recommend? (Redfin or not) Thanks 🐠 !

Is the LA market really as dry as it feels 😒

like

Is it ok for anyone to resign from new job after 3-4 months due to bad work life balance or this will impact to his/her career in future?
Your thoughts?

like

How strict is the 30-day notice policy? Would they complain if a 3-week notice was given?

Hi fishes,
So I had 2 technical interviews with HCL which I was shortlisted and I got a call to have a client prep session but I have not gotten any offer from HCL. I just want to know if this is normal

like

Additional Posts in Personal Investment Chatter

I know most people on here are obsessed with Tesla, but does anyone have any thoughts on the Lucid Air Dream Edition? It’s a nice looking car, and I love the interior.

like

Refi question - would you go through a broker? Any good ones you can refer me to?

like

New to 401k, account in Fidelity. Which funds should I allocate my money?

like

Best way to hit a savings goal for a down payment? I’m 50k short 😫

I am looking to put some money into an account for my kids when they grow up. Am I better off with a UTMA/UGMA or a 529 or a mixture of both? Which one has the most tax advantages? I’d like to invest the money and not just keep it in a savings account.

like

So, what’s the latest get rich quick scheme?

like

New to investing. Any tips/recommendations on where to start for maximum growth?

What do you keep your thermostat set at in the winter? Trying to find the middle ground between comfort and Price

like

I’m a newbie with investing...basically know nothing and wanted to ask. What sort of research do you guys do before investing in stocks? Any books you recommend? Only thing I have is index funds with VBAL so far on a friend’s recommendation. Thanks!

like

Can anyone explain how the CoVID-19 is affecting stocks, and therefore 401ks? Is it better to move over to Roth IRAs?

like

Hi - I’ve never invested before but been interested for a while. In my 20s so not much risk, no debt, no immediate goals that I’m saving up for. I have a decent amount of savings just sitting around

like

Is there a good book to teach kids, teens and even college students about personal finance or should i write one?!

likeuplifting

Big legends Guide to Three-Fund Portfolio. Yay or nay? Additionally, please share personal finance books that you recommend to newbies! Thank you and happy holidays!!✨

like