Hey guys! I'm new here and have a question I hope people can help me gain insight into.
My story is back abt 12 yrs ago I had really bad credit and my mom took a loan out for me to buy a house in California. I've been paying that loan, but am now moving to the East Coast for work and starting to rent the house out. It seems like a house similar to mine just sold for 500K (I bought at 332.5K with abt 160K down). My FICO is in the 700s now and probably will go up to 750 or so in Sept. I am a musician and currently make only 30K/yr gross as I have for a few years now.
My question is, I'd like to reinvest the appreciated cash I have in the house to A) have a place to live in the NYC area and B) Because I think that's what you're supposed to do to get a retirement right? But with an income of only 30K, I'm not sure if I am going to qualify to keep the house in CA (which is valuing at an outrageous rate right now) and also buy another property to live in. At least.
The rent for the house in CA is currently $2300/mo plus I allotted 8% for management and 12% for repairs and vacancy. I was thinking of leaving enough money on that to maintain (mortgage plus 20% would be just under $2300). Or I could have it appraised and have more options? I don't really know what I'm doing. I was hoping to get a few units and perhaps live in one for starters. The units are at least like 250K. Would I need to make both mortgages equal to 42% of my gross/yr (plus 75% of my rental income from the CA house)? Cause 30K wouldn't cut it in that case.
Anyone have any insight? I'm a professional musician and I can pretty much count to four (over and over) and that's the extent of it... ;)
