Advice on Navigating My Next (2nd) Real Estate Move.

[Brandon Bell]

I currently own a 2BR/1B in Shawnee, KS, which was my primary residence in 2020. It’s under a conventional loan at 3.5% (woohoo!).

In late 2023, I moved into a 3BR/1B in KCK, which is now my primary residence, but it’s under a 7.5% conventional loan (ouch). I'm considering moving out and converting this home into a rental.

Additionally, some neighbors are looking to sell their townhome, which could be pose an off-market opportunity. Both properties are in a market I like, and I’m encouraged to expand my portfolio.

With many paths to consider, I want to make the best strategic decision. I have a good amount of cash parked in a HYS and equity in both homes (more in the older one).

What’s the best way to seek guidance on my next steps? Any advice would be greatly appreciated!

[Brandon Bell]

@Jules Aton
I really appreciate your response—thanks for the insight!

For transparency, we have north of $70K available to work with. I've considered index funds, but I’m hesitant to tie up the cash there given recent market trends and ongoing recession concerns. While our HYSA has been competitive, rates have now dropped to 3.9% APY, the lowest since we moved the money.

I'm currently looking at short-term Treasury Bills as an alternative since recent rates are over 4%, offering a solid balance of liquidity and return. My goal is to keep the cash as accessible as possible so we can jump on the next real estate opportunity—that’s where my passion for investing really lies.

I also set up bi-weekly principal payments ($75 each) on the 7.5% loan and have considered increasing that amount. Your comment on this gives me more confidence in that approach. I also had similar thoughts on potentially using the cash as a down payment on my neighbor’s property if the deal makes sense.

Thanks again for your advice! I appreciate your feedback.