[Calc Review] Help me analyze this deal
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Hi all, I thought I could get some insight from everyone to see if this looks like a good deal. First off, this house is the house I currently live in and is fully paid off. My wife and I are looking to move out of this house into a new house. The old house will be turned into a rental that we BRRRR, and the new house will be on a Convential Loan with 20% down. Right now, the new house looks like we can get P&I for $1000/mon on a $300K mortgage.
The purpose of this plan is too get more capital to invest in more BRRRR properties. Right now, we have about $80k of capital sitting in the bank account for the 20% down payment and rehab to the old house. With this idea, we would be able to pull 130-150k from the equity, using a portfolio loan or Home Equity Loan. The downside is we would have to start paying a mortgage again(1000/mon for the new house). The upside we would be that we could afford more housing(acquisition+rehab) with the capital we pull out.
I'm going back and forth with this, and can't seem to come to terms with it, yet. Would it be better to stay in the old house, save the $1000/mon, and try to find properties to BRRRR with the $80k? Or, would if be better to buy a new house and BRRRR the old house?
I'm sure there's plenty of other variables and "what ifs" I'm missing, but just looking at the numbers, what do you all think? Thanks for reading!!