Need advice. Sell and Buy vs Rent Out and Buy


Looking for advise/opinions/personal experiences regarding real estate. A brief summary of my situation.
18 years left on my mortgage. Approximately $160,000 in equity on a house worth about $340,000. Monthly mortgage with P&I plus taxes and insurance is $1200. That is 10% of my monthly gross income. Or 6% if you combine my income within my BF’s. No car loan or credit card debt. $1500 a month towards student loans that will be paid off in 2.5 years.

My boyfriend and I would like to buy a house that is ours and are debating between a couple choices. The likely purchase price of the new home will be $450,000-$500,000. (That is required to stay in our centrally located area of the city) Interest on the current mortgage is 4%.

Keep my house as a rental. I’ve used as a rental before and the rental market is strong. Would probably rent for $1500-1600 a month. With this option we would have 10% to put down, now, on a new house.

Sell my house and get about $145,000 after fees etc. Then put 20% down on a house and invest remainder.

Wait. Continue saving cash for a larger down payment but risk increasing home prices and interest rates.

Or stay put. Save a lot. Travel more. Put a pool in! BUT, sacrifice moving to a more desirable 'hood.

PS: I am maxing out my 403b. :grinning:


No idea but great job on the finances!


Home prices will likely always be increasing (except when they aren’t :wink:), but I would recommend destroying the student loans before taking on any more debt. When you don’t have debt, you will have more freedom to make the moves and choices based on your goals and dreams instead of money.
So I guess I’m in the “wait”/“stay-put” camp.


Just FYI, I was a landlord for a while, and it didn’t suit me. It was stressful, mainly because I was just waiting for something to break that I would be responsible for. It was a great day when we were able to sell that house.


Oh god I’m so so glad to hear I’m not the only one Chris!!! Everyday I basically woke up wondering…have they flooded the dishwasher again? Was the lock stuck last week because of ice or just by chance…? We were thinking of selling next year (its been 2 years) because I’m tired of the stress and amount of work it takes to just barley break even while all our other investments soared. Have you writen a post about it, would you mind hooking me up? :slight_smile:


I haven’t written about it . . . yet. I actually didn’t think about writing about it, but it probably would make a good story. Hmmmm.