Hello everyone and thanks in advance for your thoughts.
I've been trying to get into real estate for some time but felt the lack of capital prevented me from doing anything (I know, not a legitimate excuse). I've been reading the BP posts and books and I feel very empowered, primarily since I realized the equity I have in my condo. But now I'm conflicted on the best way to proceed with this new found capital.
Here is a snapshot of where I stand
- *Loan Balance: $183K
- *Estimated Value: $280K (conservative) $300K (optimistic)
- *Equity: $97K ($69K net)
- I also have about $25k of bad debt (C.C.)
These are the options I'm considering
Sell the condo: Sell my condo, payoff my bad debt, and house hack. Using the remainder to purchase a townhouse w/ basement to rent. I quality for $340K max and in my area that would only allow me to get so much.
Refi/ HELOC/ Buy: Refinance with cashout to payoff bad debt, rent out the condo (I'm optimistic I can get $100+ cashflow after expenses). Next get a HELOC to use for a 3.5% FHA down payment towards another condo similar to mine. This would mean a lateral move housing wise but i'd have a rental property.
Hopefully I provide sufficient information, looking forward to your guidance.
Thank again!
