Dilemma - buy our own condo or go back home

[Sharon Supera]

Hello BiggerPockets community,

I’m grappling with a significant real estate decision and would appreciate your insights. Here’s the situation:

We own a detached home with 2 units, consisting of a legal 2-bedroom basement and a 4-bedroom, 3-bathroom upper floor. Purchased 14 years ago for $500,000, the property is now valued at $1,500,000. We rented it out 6 months ago due to our need to move to a more accessible condo for a family member with a recent physical disability. The current rental income is $5,300/month, while our mortgage is $1,500/month, property tax is $600/month, property management costs $200/month, and maintenance expenses are currently unknown.

We've utilized a HELOC from this property, amounting to $300,000, for renovating the basement and investing in a preconstruction condo and another property in a different city. Currently, we're renting a condo for $2,600/month, and while we wish we were putting that money towards our own condo, our funds are tied up in the preconstruction condo and the out-of-city rental property. Unfortunately, we can't sell the preconstruction condo as it won't be completed until 2027.

Given our situation, we need the accessibility of a condo for our family’s needs, and the idea of returning to our home is daunting, both for maintenance and our compatibility with living alongside tenants. I don’t have funds for a condo down payment unless we sell the other property to free up cash.

My dilemma is whether to keep the house and wait for the market to reach $2 million, go back and live in it, or explore other options. I would greatly appreciate any suggestions or recommendations you may have.

Thank you for your valuable insights!