Sell or rent property

Sell or rent property
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#1

Currently own a home that has increased tremendously in value. I plan to purchase a new home and sell current property to gain 80K in net profit. Second option would be to rent home in this popular market and gain $4,800 annually.

I plan to use $15k-$20K of net profit to invest into a new home I’m purchasing which will start off with 15k in equity. I forecast increasing equity in new home by another 30-45K after my renovation plan of 15k-20K? Also the new home is in an up and coming area with new homes being built for 100K more than what I’m purchasing my home for…


#2

Hi, and welcome to the forum, @mr.crossley. I have a couple of questions. The first has to do with that $4,800 figure. Is that the cash flow above costs you’re expecting or the future appreciation or…?

The other question is where you would get the down payment if you don’t sell the first house. Would you use a HELOC or other loan against the first home? Do you have other cash?

Knowing a little more about the situation could help us point you to the right resources.