Hey, I'm in the good fortune of having a close-to-downtown house in Austin, in a neighborhood that shooting up in value (and I don't think its a bubble, the local corporate momentum is too strong). It's a lovely city, but we don't need to live there anymore and are currently renting it out at breakeven.
Right now we could sell for around $650k and payoff $458k in debt financing at 4%. After commissions, taxes, I'll have enough to payoff a final tranch of student loans at 6.5% for 25K, and then have a cool $100k to be our starting stach.
Now that all sounds good, but I'm leading myself around in circles with..."well then what?". I like RE as an investment category, and Austin is going to be a hot market over the next 5 years or so.
Does anyone think the cash out story is compelling?