Greetings all!
My wife and I purchased our first home in Tucson, AZ June 2023. We have no intentions of ever selling, but would like your advice on how we can begin to consider possible exit strategies.
The home was purchased using an assumption loan with a 2.2% interest rate! (exact reason why I will never sell). We’ve got about $175k in equity due to the large down payment needed to assume the mortgage.
Today, going rents in our neighborhood are about $300-$500 more then our current monthly mortgage payment. Our goal is to transition this into a rental property within the next 5 years.
My question to you is which trajectory do we take to secure our next home/rental property?
- Would it be smart to pull the equity and use it towards the down payment of our next home?
- Do we not even consider pulling the equity and just continue to build our savings for the down payment?
We’d like to assemble a real estate portfolio over the years, and would consider buying a rental property whilst living in our current home.
I’m looking for any creative ideas or suggestions given our circumstances. Happy to provide more information if necessary.
Thank you all!!
