This probably puts me on the hedonic treadmill but I was hoping someone could poke holes in this plan before I move forward.
So question: If you have the opportunity to do 10% down payment instead of 20% AND there is no PMI (I get a deal through work at sofi.com) and you invest the rest at 7%, that's a smart move right?
I put 20% down on a 580k house (116k down) that has appreciated ~100k since I bought it.
Unfortunately, I'm feeling the limits of 1,000sq/ft with 2 renters and 2 dogs living with me
Possible next situation:
Buy ~850k house to get an extra 600sq/ft in a nicer part of town
Put 10% down instead on it and invest the 100k appreciation (rough numbers I know after realtor fees etc)
The idea of going from 3k/mo to 5k/mo seems harsh but rents would go up to help pay for it and the investment income will offset ~7k per year as well as the tax returns from paying so much mortgage interest (I'm at the 28% bracket)