Help deciding whether to sell or keep. Please advise.

[Austin Fowler]

Hello all. I have owned a duplex since 2021 and have lived in one half and rented the other. I have ~$100k in equity and have a 3.2% interest rate. Mortgage is $1700, other unit is rented for $1250 but could be rented for $1500. The unit I am moving out of can rent for $1700. Those figures are based on market data and info I received from a property manager who toured the property. I am a block away from a university.

Here is the dilema. I have $50K in debt with a payment of about $1220 in a consolidation loan that will be payed off in 3 years. If I sell, I pay off the debt, lose the asset, and have no more monthly income from the property but I would be DEBT FREE, which is very enticing. On the flip side, if I keep the property and rent for the above values, I would be paying off the debt every month from the income, essentially making me debt free due to the payments being covered, and I keep the asset, which will start cash flowing a lot once debt is gone. 

I have moved out and could literally put a tenant upstairs NOW.

What would YOU do?     

[Jaime Duron]

Hi Austin Fowler! Instead of selling, have you considered getting a HELOC on your primary home? That could possibly be another choice, not sure what the rates are going right now, but essential you would have a line of credit for 10 yrs and still able to keep your home. Another route, is getting a Refi, but with rates where they're at I would go against that. Hope the little info helps.