Ok Mustachians, I am trying to figure out if it makes sense to sell a rental property in another state, and purchase another right next store to my house. We might be able to come up with some of the cash shortfall but I am hoping the current owner of the new potential property(or a family member) will finance some of it. I can not get conventional lending as taxable income is to low. These are somewhat round numbers and values are based on Zillow's zestements. My cash flow amounts to not include mait., tax, or ins. Im assuming these numbers will be somewhat of a wash in a new property.
Any thoughts would be very much appreciated.
Thanks
House #’s
Current Value out of state home: $131,776
What we owe on out of state home: $41,864
6% sale cost: $7,900
Transferable equity: $82,012
New potential property value: $228,000
Cash shortfall: $145,988
Monthly payment on entire cash shortfall @ 6%: $1620,77
Current out of state house mortgage: $522.00
Current out of state house rent: $800.00
Current cash flow: $278.00
New property potential rent: $1200
Mortgage payment required to cash flow $278: $922
Mortgage amount required to cash flow $278: $83,000
Cash necessary : $62,988