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Updated over 3 years ago,
Pro Advice for Newbie
Hello BP community. My fiancé and I need advice on deciding if we should sell or keep one of our properties in the Denver market. I'm still new to the real estate investing world so please forgive my ignorance in the matter. My fiancé and I will be building a new home soon. Break ground May 20 and it estimated to be a 8 month build. I own a home, which I bought October 2020, with 60K in estimated equity as of today. That home also has renters paying $500/mo over mortgage. Renters signed a 12mo lease in March. So far so good with the renters. She owns a 3Br 2BA SFH which is coming up on her one year mark. Estimated appreciation and equity in her house at the end of 2021 is 80K. Her neighborhood has a great school, there are plans to have a shopping center, grocery stores and offices within the next 5 years. I would like to keep all properties and rent out both. I believe her house will have a lot of appreciation in the future with the upcoming plans and I believe we could rent her house out to break even at the very least. My thought is to hold onto it until the shopping center and stores get built then sell hopefully for a larger profit down the road. If we decide to keep both, the cash to close amount on the new house (approx. 40K) would take a large part of our savings. I feel our options are: sell one of our homes, cash out equity on one of our homes, or use our savings for cash to close to keep all homes. My perception is the Denver market is hot right now but worried about how long it will stay hot. And the current US economy situation worries me as well. Greater the risk greater reward but I want to make sure I'm making a smart move. I know this is some superficial information and I will try to provide more if asked. On the surface, how do you all feel? Thanks in advance!
Eric