Turn Primary Residence into STR or Buy New

[Christina Webber]

Hello! My husband and I are looking into a STR investment property in the near future. We planned on selling our home on Cape Cod and using some of the profits to purchase the STR (likely a small cottage closer to the water) plus a new primary residence. We purchased our first home when the housing market tanked 8 years ago so it's appreciated quite a bit. However, I'm wondering if it would make more sense to turn our house into the STR instead of selling. We would have to do a cash-out refi and convert to a conventional loan (so we can use our VA entitlement on our new family home). It has two bathrooms and could potentially sleep quite a few people, whereas a new cottage would be much smaller. It's about 1.5mi from the nearest beach so not ideal but not a bad location either.

I would love any suggestions/advice! My husband has a background in construction/property management but I'm a nurse (SAHM for now) so this is all new to me! Thanks!!!