All Forum Posts by: Ishtiaque Hussain

@Ishtiaque Hussain - Was this condo your primary residence for more than 2 years over the last 5 years? If so, it might make sense to sell it and grab the tax free money.... $250k for a single person and up to $500k for a married couple. At the end of the day, it all comes down to return on equity. If you are cash flowing 1000 a year from the condo and you have 100k of equity, that equals a 1% return on equity vs the cash flow which is minuet at best. You want to try to get that above 6% for an asset. 

Nonetheless if you did sell the condo and grab the money, the other question is can you get a higher return than 6% in the market vs paying off your mortgage. I would think most people can get above a 6% return investing it elsewhere hence I think it makes sense to keep your mortgage as is, reinvest the money into another asset that provides cash flow in excess of 6% and use that cash flow to support your higher mortgage payment. 

I was going to say the same thing as Andrew about tax implications for the sale.  

with the rental itself, is the rent covering all of the expenses and the reason you don't have much left at the end of the month due to the cost of the new house?

I believe they were referring to getting rid of PMI by bringing the equity up to 20%.