Investor · Rochester, NY · Member since 2017 · 206 posts · 175 votes
Hello, I've been wrestling with a decision for the past week and I'm looking for some advice.
We are cashing out of a flip, which we are currently living in, and using the profits to put 20% down on our 'forever home'.
Here's what I'm struggling with: We also have a buy and hold on Park Avenue in Rochester NY. Which is a very desirable neighborhood. Currently it cash flows about $500 per month, but with the addition of a 2nd full bath i feel it could cash flow at almost $800 (which is what comps are renting for). It needs a paint job and a new roof. I'm considering selling it and paying off our current forever home. So what's better; no mortgage on a primary home and no investment property -or- mortgage payment on primary home and investment income?
Rochester, NY · Member since 2013 · 101 posts · 48 votes
9y
You're on a real estate investment site... I don't know how you thought the suggestions would be any different :)
Of course you want a mortgage, the rates are at all time lows. Why would you take your money and earn ~4% when you are earning ~$500/mo?
On another note, why put 20% down on your house!? That money could go to the roof, paint job and bathroom. With the extra 3600/yr, I think you would be much better off!