All Forum Posts by: Paula Mason

Thanks so much, everyone, your advice gives us a lot of food for thought. I feel more confident in our decision to mostly likely keep the duplex and it ultimately reinforces why we bought it in the first place instead of a single family home--for more financial freedom, especially at a time in our lives when work-life balance matters a lot.

I'm going to continue to research the different ideas everyone mentioned, ie. FHA loan, a HELOC, etc., but I can see we have some options going forward, so that's good. And Marcus, I totally understand why some of your clients keep buying duplexes and pushing off the single family house until later! We've been really pleased with how relatively easy it's been to become both homeowners and landlords at the same time, especially when you have great tenants. I was a bit worried that if we rent both units, it's more of a moderate cash flow compared to what some of the larger duplexes out there may yield (it's a bungalow with two bedrooms on both levels), but I think that the location and home itself will hold its value and continue appreciating.

And Luis, we probably would look to spend between 200-250K  for our next property, but if it ends up being a bigger duplex that ultimately we could fully rent again (an appealing idea!), then I think we'd be at our goal of having all mortgage costs covered by the rental income and having a bit extra to save. And thinking of building of a portfolio rather than simply owning a single property at all times is a newer mentality for us, but I think one that would ultimately pay off more in the long run. 

And @Brett Kash, were you happy with your experience at Summit Credit Union? I'd like to consider a credit union in the future. 

I greatly appreciate everyone's feedback! Thanks so much again.

Thanks, Shawn! We tend to agree and I think will ultimately lean towards a plan like yours--cash flow matters a lot to us as well, especially with having a little one and managing the family income. That's great and really freeing that your two properties completely cover your primary residence. Thanks so much for your input!

Hi everyone! I'd love to hear any advice from more experienced folks regarding my family's current real estate situation. My husband and I bought a duplex in 2017 for $205,000 in Milwaukee, and have about $164,000 left on the mortgage at a 4.25% interest rate. We live in the lower unit and rent the upper for $775, with a monthly mortgage payment of about $1300 (including escrow). We're thinking about buying a second house as our family is growing and we'd like more space, but are torn about keeping the duplex or not. It's been helpful to have the upper unit subsidize the mortgage, and we think we could rent the lower unit for $1200, which leave us with about $600-700 extra each month after paying the water utility.

The area we live in has been growing rapidly in the past 10-15 years as a hip neighborhood with rising property values. We'd like to buy another house in the area (either a single-family home or a larger, 3 bedroom duplex), but are not sure if the profit margin makes it worth keeping our current duplex or not. I think we could likely sell it for $220,000+ or more if we were to go that route, especially if we did a few little updates on the inside, but our initial thoughts are to keep the duplex as an investment and to have a bit of cash flow. The challenge would be to save again for another down payment for a house that will likely be pricier if it's bigger. Any thoughts or advice are greatly appreciated!