Sell or Keep?

[Alvaro Tlachi]

Hi everyone!

My fiance and I own a property in south Everett WA. We purchased it in November 2020 right before the pandemic at a purchase price of $330,000, a 3 bed 2 bath with a detached garage that was converted into a small room. We have a 2.75% 30yr mortgage with a $1,880/mo payment. We are currently renting the house out by the room (furnished) and on average bringing in about $2,700/mo in revenue. The home is currently now worth about $525,000 due to the rapid appreciation we all encountered during the pandemic and we believe rent is pretty much capped for the area (class C area). We have started to think about selling the property and using the proceeds to buy another home in a more desirable area where we believe market and rent appreciation has greater potential for growth. Although the idea sounds great on paper, I can not get over the fact that the property is cash flowing so well even though market and rent appreciation has dramatically slowed. 

Does anyone have any ideas on how I can run the numbers on this option so that when a decision is made, it is backed up by numbers? We currently do not have a home selected IF we were to sell but we are thinking the Lake Stevens/Snohomish or Cashmere/Peshastin area if possible. Any help would be appreciated. Thank you so much!

[Michael Haas]

Here's a list of good HELOC providers, in no order. Sometimes there's discounts and benefits if it's a bank that you use for checking or savings, so if you have banking relationships with any of the companies below I would start there!

Umpqua Bank:

Seattle Credit Union:

Keybank:

Bank of the West:

Banner Bank:

BECU:

First Tech Credit Union:

PenFed Credit Union:

OBee Credit Union:

First Security Bank of WA

Figure: