Starting out: Do I Sell?

[Mimi Perez]

Hello all,

I am not yet an investor, but have been listening to podcast for months trying to best determine how I can start the process. My goal is small. I would like to be able to own a multi family unit (4units or less) where I can live in one of the units. I am 52yo, a full time nurse and will not be leaving my job, but I would like to decrease the amount of hours I work.

My dilemma: I currently own my own home (I owe about $165,000). I wanted to start by house hacking but (1) I am not allowed due to strict HOA rules and (2) my city isn't as desired as the next city over. I can sell for $100,000 more than what I paid.

The city I would like to purchase rental property in is more expensive than where I currently live. So, I thought I should sell, take the profits and put into high interest account, rent a room for myself for about $1100 per month with all utilities included and that way I can save additional funds for a year.

I'm torn because people say "don't sell... houses are going to keep going up". I have a great interest rate at 2.64%. The area I own is growing. But my taxes, CDD, and HOA total are about $6000/year. I can't rent the whole house because my subdivision has reached it's rental capacity, but I can get my name on the list.

Any advice would be greatly appreciated.

Thank you!!

[Scott Trench]

Maybe you can sell and still keep that great low interest rate. If you are planning to move into the next property, you may be able to find a property for sale that has an assumable mortgage. This means you could move the mortgage into your name.

This is specific to owner occupants, but could be huge for you. FHA and VA loans are typically eligible for assumption.