Hey guys,
My girlfriend and I are looking to start investing in rentals and wanted a little guidance on how to use our current apartment's equity to do so. We're interested in moving out of Manhattan and renting for a while. Since we're moving we need to either sell or rent out our 1BR.
If we sold, we'd get a substantial amount of cash to start purchasing properties and have no debt starting out.
If we rent out our apartment, we'd probably break even every month with rental income due to coop fees (2x maintenance) . We'd most likely need to take money out of a HELOC to start out. Would also have someone paying down our mortgage which would be nice.
Also looked into cash out refinance but I don't think we could rent the apt. for enough money to cover the new mortgage payments. More debt doesn't sound like the best idea right now..
My gut is telling me we should sell, but the property is pretty valuable and in a great area. We also love all the work we've put into it.
Any advice would be appreciated.
thanks,
dan