My purchase proposal

[Robert Not Shiller]

Hi... I need advice on my scenario so thought i'd ask on BP.

- We have a 600k mortgage on our primary residence. $4000 total monthly payment (incl insurance, util etc) after adding in a few extra bucks on top. Equity available is $300k.

- I have a multi family home with $350k on the mortgage, that I rent out for $4500. $3000 total monthly payment (incl insurance, util etc) after adding in a few extra bucks on top. Equity available is $600-700k.

- My wife fully owns a property that she rents out for $2000 with equity available of $350k

- Our combined income from employment is $280k

- Our combined credit card debt $15,900 both at 0% rates

- Monthly credit card spend of $1500-$1800 (includes groceries, cell phone bill, cable, shopping etc)

- $800 vehicle insurance per year

- Savings of $80k

- Combined 401k/IRA/just for fun trading accounts of $275k

- We have 2 toddlers that we would like to provide for with long term assets

Seeking to purchase a new construction property as either new primary home or investment with a purchase price of ~$1M in our city and 10 year tax abatement. We would rent out our primary residence for $4300-4700 OR rent out the new property for $5500-$6000. Either way we intend on keeping the property for 15+ years.

Questions:

1. What do you first think? What jumps out? I’m home equity rich?
   
2. What should be a smarter price range of new home to purchase given our scenario?
   
3. Are we too leveraged? Banks will easily give us a loan for a new place which we know is not a good thing.
   
4. What is a smarter way to access money to get into another property instead of taking out equity/retirement accounts?
   
5. Should we hold off altogether to reduce debt while impending economic problems get transpire?
   
6. What are we not thinking of regarding wanting to invest into another place?
   
7. Should I take out home equity to do renovations on my multi family home to bring rental income closer to $7000?
   
8. What information have I left out that should be provided?