Hello! This is my first post on any forum, quick run down on my situation-I’m 28, married with a 9 month old baby. We are looking to purchase a property that has been in my family for over 100 years. This would be our new primary residence. We are getting a decent deal on the property and essentially being gifted 20% equity of the property.
Our current house is 2 bedroom, 1 bath. I’m in the process of finishing the basement and adding an additional 2 bedrooms and 1 bathroom. So once the renovation is complete it will be 4 bed, 2 bath. I need approximately 10k to complete the basement. Once the renovation is complete the property should be appraised at 190-200k. At a 190k appraisal we would have 70k in equity.
If we chose to keep our current property and rent it out, we should be able to get $1,500-$2,000 a month in rent. At $1,500 this would cash flow $550 a month.
This is the option I really want to do, but my wife isn’t exactly on the same page as I am. Her main concern is if we stick 10k into the renovation to complete it, and closing costs on our new property, plus a couple small updates to the new property. We are going to be like completely out of savings.
I’m in sales so my income can very month to month. I’m also a carpenter and am doing some side jobs on the weekends for some extra income.
Should we finish the basement and sell the house?
Or finish the basement, rent the house and be strapped for cash for a bit?
Or is there a better option for us?
Thanks in advance!!
