Hey there! So, here’s the deal: I own half of a townhouse in a pretty weird area when it comes to housing prices. I bought it a whopping 12 years ago for a sweet deal at $42k. At the time, my financial situation led me to take out a 30-year loan, which now seems kinda silly, but hey, it is what it is. Fast forward to today, and I still owe around $30k on it. The good news is that the current assessment values it at $120k, so we’ve got some solid equity building up there.
The townhouse itself is a pretty decent deal – 3 bedrooms, 1 bathroom, a 2-car garage, and a good-sized yard. It’s been a reliable space for me, but recently, I’ve made a big move. My partner and I just snagged a massive 2600 sq/ft house with 6 bedrooms, 2.5 bathrooms, and another 2-car garage. Sounds like a dream, right? Well, it was a foreclosure, and to top it off, all the copper had been stolen out of it. So, now we’re looking at some serious plumbing and heating work that needs to be done. We managed to score it for a steal at $45k, but our contractor estimates it’ll take around $70k to get it up to living condition.
Now, here’s where I’m scratching my head: I’m thinking I could rent out my current townhouse for a decent $1600 a month. Sounds like a good plan, right? But then I’ve got this new house with a hefty $120k debt hanging over my head. So, I’m torn – do I keep the townhouse and juggle both properties, using the rental income to offset the new house’s debt? Or do I sell the townhouse, potentially paying off a chunk of the new house’s debt and simplifying my financial situation?
I’ve been mulling over these options, and honestly, I could use some outside perspectives. It’s a big decision, and I want to make sure I’m setting myself up for success in the long run. So, if you’ve got any thoughts or advice on what I should do, I’m all ears. Let’s figure this out together!