Updated about 3 years ago on . Most recent reply
To stay, sell, or rent
Trying to get into real estate investing but not sure if it's the right time. We owe about 113,000 on our (3br 1ba) home and it currently is valued at 190,000. Our interest rate is 2.875% on a 30 year mortgage that began in 2020. We're in a college town and believe that we could get $1300 a month for it. Our mortgage + taxes + insurance + PMI is around $750.
Life context, my wife is finishing her degree in May of 2024. We have a 1.5 year old and have another one on the way. We'll need a bigger home in the next year or so and we could move in with my parents while she finishes school before beginning to work as a teacher.
Given the state of the economy, should we stay put and wait until we have another income before making any moves? Should we sell and live with my parents and begin to build? Or should we rent our home, live with our parents, and see what the economy does and decide later to build?
Most Popular Reply
#2 Starting Out Contributor
- Realtor
- Hanover Twp, PA
@Russell Newton, there ya go! So, it sounds like you are looking at a capital gain of $50-70k. Is it it to you to sell now and be exempt from tax on that gain or sell later after renting it several years and take that hit.
Me, I would probably sell and buy 2 duplexes and have 4 cash-flowing units working for me with no additional money out of pocket.