All Forum Posts by: Manish P.

Thanks @Francisco Hernandez for the response. My end goal is to relocate to TX and in the interim , if I can use this opportunity to hold on to one door as a rental property( my current home ), I would like to assess the financial merits and demerits of the same. Having said that, I am not sure if I follow your suggestion of "negotiate and walk away with extra cash". If you can share some more info on that, I will appreciate it. 

@Shanequa J. Thanks for your reply. I did accounted to the said expenses and I believe it will cash flow of $500. Regarding two mortgages, thats a great point and I will check with my lender on that. 

Hello BP members,

I am a homeowner in MD, trying to crunch numbers to decide if I should move to TX or not.
My current home A has 320k left on mortgage from 400k @2.5%, with remodelled kitchen and bath. 
Current valuation of home is about 580k. Rental approx at 2900/pm. 

For new home B, It will be 7.5% for 550k. 
Any pointers on how should I run numbers to compare two cases.

Case 1:  Rent home A, Buy Home B @7.5%, with potential refinance at 3.5-4% ( ifff thats feasible ) after 2 years, once the rates are down. ( i know high hopes , but I dont think 7.5% is the new normal ).

Case 2: Sell the home, get equity out, pay the whole equity ( dont know if thats wise ) towards downpayment of home B, reducing loan amount to approx 320k. 

As a side note, feel free to throw suggestions and let me know its a dumb move to buy property as primary residence and pay 7.5% mortgages, sit out. :) I wont mind at all. I am here to catch your brains and help make a decision.

TIA !

Even thought its an old post, I want to thank @Jason Malabute & @Jonathan Twombly for a question and a great insightful answer.

Even thought its an old post, I want to thank @Jason Malabute & @Jonathan Twombly for a question and a great insightful answer.