Brutal feedback by smart real estate people needed

[Frank K.]

Hello Everyone, 

I am a huge bigger pockets fan, yet have been in the quiet observation mode for many years. A recent real estate issue popped up, which I thought would be properly vetted through such a great real estate community like this one.

Here's the situation.

After my first single family flip (a full drop to foundation & build up), my family moved into a two family which has one apartment larger than most single family homes. As an owner this was to be the passive income we always wanted. The problem though is, my family is getting tired of the apartment life: noise from upstairs, trouble w/ tenants, etc. 

Here are the options.
#1. Dump it. Pull the equity out, which is enough for a sizeable down payment on a single family. It will probably push us into a smaller home as we are living in NJs crazy expensive Bergen County.

#2. Refi, pull Cash out, and buy a smaller single family while retaining our current home for income. Income would be enough to cover the bills, yet a roadblock along the way could make this very difficult.

#3. Any other ideas?
Just wondering if any of you smart folks could have some advice for this confused home owner/investor.

Only limitations to the discussion.

Kids love my town/school, and don't want to move.

Thanks in advance for your responses.

Best,

Frank

P.S. Brutally honest feedback is always welcome.

[Tyler Gibson]

@Frank K. I assume you are married. What does your wife think/want? I personally think that my relationship with my wife and her being comfortable with our living situation and financial situation is the most important thing. So I always start there e kick ideas back and forth until I get the "I think I could support that answer". You say a Refi would pay the bills. Would it completely pay for it's self? That means mortgage insurance taxes, budgeted repair expenses? If it is going to be a negative on your finances then it is best to sell it and move on. No one can tell you what you should do only you can figure that out. I just try to bring up questions that maybe you haven't asked yet so you can work through it all and make a good decision. 

Best of Luck to ya.