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Updated over 5 years ago,
Cashing in retirement for 2nd house
Looking or some wisdom on if this is a good call. We have a manufactured home that will rent for $2200-2400 monthly with a monthly payment of $1150. Our renters just moved out and we finished a repaint of everything, new carpet, lots of TLC planning on selling it so we can have equity to buy a new home in a new city we just moved to last year. We cannot pull equity out of it because is is manufactured and we are no longer living in it.
A fried suggested cashing in retirements (my wife and I have 2 small ones) to get a down payment for a house to live in and keeping the rental which is producing cash and is 15 years away from being paid off if we don't increase principle pay down (which we intend to do). If we do list the house is is going on for $290,00 and we owe $150,000.
Is this totally crazy or does it have a shred of viability?
Long term our hope would be to pay off the rental and every 5 years add one, slowing increasing passive income. I know I have a ton to learn but this is a bit time sensitive as we are deciding to put our house on the market or get new renters.
Thank you in advance for any input.
-Mike