What's Our Next Big Move?

[Phyllis Kelly]

Hello, looking for some advice on our next real estate move!

We house hacked our first property, a duplex, back in October 2021. We bought was was then a 2/1, 1/1 for $200,000 at an amazing 2.6%. We since remodeled this property to a 3/1, 2/1, and we net almost $1,100/month after mortgage and utilities are paid.

We currently owe $182,000 on this mortgage. Although we haven't had the building appraised, we believe it would be somewhere around $250,000. So a HELOC would give us about $18,000. We could then use this $ to fund another house hack, but of course we'd then have two mortgages and one HELOC payment. Let's call this Option A.

We don't have much savings at this point as we depleted that remodeling this building.

Option B, would be to sell this building, and pocket $70,000, assuming we are correct about the $250,000 appraisal. We could potentially buy two more properties this way, another house hack and an investment property.

Since rates are still sitting at 7%, I'm not sure any move is in order right now. However, if they come down soon, I'm curious what you all think would be the better option or if you have any other ideas in mind.

[Caleb Brown]

I'd just save up. Then buy another house hack. Getting a HELOC for 18K is not worth it. I wouldn't sell either since you have a low rate and you'd have closing costs when you do sell. You should be able to buckle down and save within the next 6 months.