I'm planning a move to NC and trying to make the smartest financial decision with my current home. Here's my situation: • NJ Home: Worth $525k, $190k mortgage remaining, prime location in Bergen County with easy NYC access. • NC Goal: Budget $600k or less for a new home. My options are: • Sell: Maximize down payment in NC, reduce debt. • HELOC+Rent: Keep NJ property as an investment, rent for potential $3,300/month. I'm interested in long-term wealth building. What are the financial pros and cons of each strategy? Any advice is greatly appreciated!My current mortgage payment is $3023, and I have only 9 years left on my loan term.

Honestly, you should run the numbers on both. That is a lot of equity in the home, and not a lot of cashflow if I am reading that correctly. Give a loan officer a call and work through your options that way. What is your timeline for moving? I would guess just based off of the info given that your best bet for wealth building is to go low down payment in NC in a great area (Im down here, if you have any questions shoot me a dm) and hold the NJ property. The name of the game is to get the max amount of appreciation, on the most assets possible.

Hey David, I work with a ton of developers and investors in Bergen County and could get you an offer on your property if you're planning on selling it. Save you the hassle of listing it and paying out a bunch of realtor commissions. We mainly deal with off market properties. Let me know, thanks.

Considering the hefty property taxes in my current area, totaling around $9,000 annually, I'm contemplating selling and reinvesting in two properties within the Charlotte area. This strategic move holds promise for generating positive cash flow, which could effectively alleviate the future monthly deficit if I refinance my house. If my statement is not correct, please let me know.

Hi Jason, I'm new to this whole thing and came across cash-out refinancing. It sounds like a good option, especially since my bank offers it. My brother, who owns a business, actually recommended keeping the house and to use HELOC for the second home. He was able to buy two houses using a HELOC because his business has strong cash flow and he can repay the loan quickly. Anyway, after reading your post, I'm leaning towards refinancing my house. Would you recommend any YouTube channels, books, or podcasts to learn more about cash-out refinancing and similar options? Thanks for your reply

David, Why sell if its a future retirement that will offer equity/cash flow. Instead I would pull the cash out to buy the home in NC. I would look at a cash out refinance instead of a Heloc for a few reasons but the main reason is a Heloc is a burden on the property since its in 2nd lien position. That means you can never take cash out again unless you pay it off. You can also get a lower rate on a 30 year fixed and even though its a 30 year loan there is No prepayment penalty so you can pay as much as you want but not obligated to pay more. A Heloc is a credit risk and can "never" be used as an asset or PITI reserve which is required when buying additional properties. Mortgage rates are much better versus Helocs due to Heloc being a shorter term and carry higher rates. You should need much you can buy a primary home for 5% down, Vacation home for 10% and investment for 15% and keep in mind if you have PMI the rate will always be lower. A lot of people put more down but end up with a higher rate. PMI offers a lower rate because the private insurance offers assurance with less risk.

Followed Discussions Followed Categories Followed People Followed Locations

Investor Mindset

Market News & Data

Market Trends & Data

Buying & Selling Real Estate

Out of State Investing

Real Estate News & Current Events

Real Estate Technology

Investor Mindset

General Info

BiggerPockets Exclusive PRO Area

PRO

General Real Estate Investing

BPCON

New Member Introductions

Questions About BiggerPockets & Official Site Announcements

Off Topic

Starting Out

Real Estate Success Stories

Real Estate Horror Stories

Real Estate Strategies

House Hacking

Commercial Real Estate Investing

BRRRR - Buy, Rehab, Rent, Refinance, Repeat

Mobile Home Park Investing

Innovative Strategies

Multi-Family and Apartment Investing

Land & New Construction

Wholesaling

Rehabbing & House Flipping

Short-Term & Vacation Rental Discussions presented by

Tax Liens & Mortgage Notes

Medium-Term Rentals

Buying & Selling Small Businesses

Outdoor Hospitality

Landlording & Rental Properties

General Landlording & Rental Properties

Managing Your Property

Marketing Your Property

Tenant Screening

First-Time Home Buyer

Real Estate Professionals

Mortgage Brokers & Lenders

Contractors

Real Estate Agent

Financial, Tax, & Legal

Personal Finance

Creative Real Estate Financing

Private Lending & Conventional Mortgage Advice

Insurance

Tax, SDIRAs & Cost Segregation presented by

Foreclosures

1031 Exchanges presented by

Goals, Business Plans & Entities

Legal & Legislation

Real Estate Classifieds

Classifieds

Real Estate Events & Meetups

Reviews & Feedback

Ask About A Real Estate Company

Real Estate Deal Analysis & Advice

Guru, Book, & Course Reviews

Syndications & Passive Real Estate Investing

Updated 9 months ago on 05/29/2024. Most recent reply

3
Posts: 1
Votes

David GomezPoster

Fair Lawn, NJ

Investor Mindset

Sell NJ Home or Tap Equity for NC Home Purchase?

David GomezPoster

Fair Lawn, NJ

Posted April 04, 2024 08:10

I'm planning a move to NC and trying to make the smartest financial decision with my current home. Here's my situation:

NJ Home: Worth $525k, $190k mortgage remaining, prime location in Bergen County with easy NYC access.
NC Goal: Budget $600k or less for a new home.

My options are:

Sell: Maximize down payment in NC, reduce debt.
HELOC+Rent: Keep NJ property as an investment, rent for potential $3,300/month.

I'm interested in long-term wealth building. What are the financial pros and cons of each strategy? Any advice is greatly appreciated!

My current mortgage payment is $3023, and I have only 9 years left on my loan term.

1 Vote

6 Replies

Jump to Last Reply

Most Popular Reply

23
Posts: 22
Votes

Justin Roland

Lender
Charlotte, NC

Justin Roland

Lender
Charlotte, NC

Replied April 08, 2024 15:06

The return on equity isn’t very good for those properties. NC and SC have some great markets for short term rentals and you would definitely increase your wealth by splitting the money and buying multiple properties. I self manage 2 properties out of state and can help you if needed. Also, if you need a mortgage broker.. I know a guy

Always happy to help just shoot me any questions

Justin

1 Vote

Sort By:

Oldest

Loading replies...

Your Profile Views

Curious to see who's interested in your profile? Unlock your views with Pro

Connect with others

7 day free trial. Cancel anytime.

PRO

Upgrade to Pro

Market Finder - key investor metrics for all US markets

Deal Finder - investor-focused filters and notifications for new properties

Calculators - Unlimited access to 9+ property analysis calculators

Find an Agent

Find & Match With an Investment Friendly Real Estate Agent

Enter your market to get started

Rent Estimator

Address or ZIP

loading related articles...