Hello BiggerPockets family!
I am new to real estate investing and frankly I am not sure where to start. I listen to all the BiggerPockets podcast and I have a friend who has been wholesaling for years and just started getting into pretty house investing. He has been mentoring me for around two months now. I plan to continue to learn from him and hopefully land a deal one day. The question I have is one that I desire other peoples opinion on because I am not sure the best course of action (there are probably multiple solutions).
The home I currently own is a 30 year fixed and I owe $160,000. The homes value I estimate is around $185-190,000. It is in a really nice neighborhood with an HOA that is $600 a year. It is 4 Bed/2.5 Bath. My monthly payment is $1100 a month. I am considering either renting the house after living in it for two years or just selling it to get some extra cash. I figured I could possibly rent the home out for $1750-1850.
Now the reasoning. I currently work a 55 hour a week job for $66,000 a year. I have $20,000 in student loans, $20,000 in personal loans, and $8000 in credit card debt. Also I am married with a 3 year old and a 1 year old. I was thinking selling and getting a smaller home would help me save money and pay off some of my debt. My line of thinking is that if I pay off debt then I can finally start investing in real estate. So I was thinking I could just do the extreme and sell the house to get out of the large payment each month and then focus on paying off debt.
I appreciate all responses and opinions. Thank you for your time!
