looking to buy a single family home now!!

[Marquise Bailey-Dillard]

Good Morning Everyone!

In 2020 my wife and I Purchased a 2 family house in Massachusetts for 380k and the interest rate is 2.75%(FHA Loan). If I knew what I knew now i would've not went with FHA due to always having PMI. We Currently live in one of our units and rent out the other. The goal was to live here until we pay off student loans and buy our single family. Well Things dont always go as planned. We now have a beautiful 2 year daughter and a full grown dog that needs more space lol. we currently have around 17K left in student loans and we started with around 80k combined!

I'm working my butt off to pay off the remaining student loans and hoping by spring time ill have them all paid off. my question to you is what should my next step be when I pay off my student loans? the only debt ill have is my mortgage 

I do not want to sell the 2 family. I would like to hold on to it and self manage (small time landlord). both units will pay the Mortgage and some once its completely rented out. 

Thank you in advance! 

[Tre DeBraga]

whats up marquiese! you might not even know what house hacking is but what you are doing is called house hacking and it is a great way to build wealth in real estate! I would definitely hold onto the 2 family and let the rent cover your mortgage as you build equity in the property while the property appreciates overtime. once you have 20% equity in the property you will no longer need PMI. Maybe by the time your daughter is ready for college that 2 family can pay for her schooling + more.

regarding next steps in buying your next house for you and your family. I would definitely start talking to lenders and a realtor ( me ) about lending programs and what you can afford. I assume you have great credit due to you paying off your debt so quick. The debt from the 2 family shouldnt hold you back if you can show it is being rented. theres so many different routes you can go like the traditional route or take advantage of some MA home buying programs. we would need to talk further to see what fits you best. any questions feel free to reach out. Good luck!