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Updated about 5 years ago on . Most recent reply

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Andrea Rosa
  • New to Real Estate
  • Charlotte NC
0
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2
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No idea how to take next step in REI

Andrea Rosa
  • New to Real Estate
  • Charlotte NC
Posted

Hello! I'm stuck and don't know best course. I own a townhome w/ roughly 135k mortgage left, but it's worth 225k now.   I have roughly 25k cash for a mortgage down payment.  I would like to buy a primary single family home and rent out the previous townhome. I have excellent credit.  What should I do mortgage wise? Current townhome mortgage is approx 1100 including hoa, and piti.  I plan to own this townhome for maybe another 5-7 years-ish then sell. Here are the options I can think of

1) keep things how they are and just buy new primary home with cash down payment and get standard 30 yr loan.

2) refinance townhome first to a 5/1 arm or 7/1arm to lower monthly payment= higher rent profit? Then get 30 yr loan on new home.

3) get a heloc on my townhome and either pay down townhome principal or use this cash towards buying the new primary home?

4) just sell the townhome now and use money towards new primary home and maybe a lil towards a down payment on a different single family rental house. That way I won't have the HOA fee...

5) any other suggestions? 

Where does starting an LLC come into play in all of this?

I'm stuck and don't know next best step.  I need your guidance on what you would do!

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