Hi all,
To make a long story short I own a 2bd 2br condo in Moreno Valley, ca (92555). My husband and I rent it out for 1800 which means we cash flow 400 each month. The property will be paid off in 5 years and we currently owe 37k. Once paid off we will cash flow 1100 per month (not including putting money into reserves or potentially paying for a property manager).
In your opinion would it be a bad idea to sell the property and use the proceeds to purchase a condo in Rancho Cucamonga Ca (91739) ? 3 bd 3 br. We would live in this new property and rent our current Rancho condo and cash flow 800 per month if we rent out where we currently live (Rancho).
Eventually with this route we would end up buying a forever home down the line and then have 2 Rancho Cucamonga properties. Cash flow on these would be 800 and 400 (before mortgages are paid off) and then we would must likely increase cash flow to 2000 for each property once paid off (before putting money in reserves and potentially paying for a property manager).
Pros:
We would own 2 properties in a very desirable area (higher socioeconomic area with great schools)
if we saved we could pay one Rancho property off in 5 years and still have a paid off property that would cash flow 2000
With Rancho Cucamonga rentals We would cash flow more in the future with better rate we would probably find more qualified tenants. ( it took 2 months to find qualified tenants for the Moreno Valley property although we had quite a few applicants)
cons
perhaps we would be overpaying for a property The market is high right now and 3 bed condos are going for over 600k
The future is uncertain with everything going on politically. If one of us loses our jobs, we would still be able to live off one income but our savings would be significantly reduced.
Any insight would be helpful and much appreciated.
