Can’t decide what direction to go...

[Paul Anderson]

My husband and I are stuck and don’t know what to do....need help!

Here is our situation:

When we got married, he moved into my home.

We started renting his townhouse to his parents (I know...renting to family, not the best idea).

He owes about 130k on his townhouse, we think it would appraise for about $180k.

I owe $140k on my single family home and have a 15 year mortgage and have a 2.875% interest rate. (Don’t really want to give that up). It would probably appraise for about 200k.

Do we refinance one of our homes take the money and put it down on 1 or 2 rentals?

We’ve also never really made the renting to his parents thing official, we should probably have them sign a lease. They just pay the mortgage amount, we don’t make money off them.

We also just had our first baby. And wouldn’t mind moving in the near future but at the same time will stick it out in my home if we have to!

How should we start??? We need someone to tell us what to do!

We also love Dave Ramsey and are trying to become debt free. But we understand that we might need to go into debt to get this investment property dream going...

Any advice would be appreciated!

We are in Minneapolis, MN if that matters : )

Thanks!

Emily and Paul Anderson