Author Topic: Revisiting Housing options  (Read 358 times)


  • 5 O'Clock Shadow
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Revisiting Housing options
« on: February 22, 2019, 08:12:22 AM »
I've posted on this before, but enough time has passed its worth re-examining.

I have $290K loan out on two properties. One of which has a home on it in which I currently live. The other property is next door and I plan start building a second house this spring.

I have close to $100K to start the second home, but to my best guess, that will get me about half way to completion(I will be GC and do a lot of the work).

My current monthly payment is $1725 a month, roughly $20K per year. Interest rate is 4.75%

I could sell my current home for anywhere between $375K-$425 (Theoretically, in current market)

If I sold it I would have enough to finish second home and live mortgage free, which is appealing.

The funny thing is, almost everyone I discuss this with urges me not to sell, saying it is always better to own real estate than not. This idea likely stems from super high growth in the last 20 years.

In fact, I get this response so often, "why would you sell?" that it makes me question my own strategy.

I could rent current property for around $1500 max per month. I could probably get $30K a year for it if I really pushed it as a vacation rental. But, $30K a year is really only $10K a year if you factor in mortgage payment, and a lot of work for $10K

I'm on the west Coast, in a highly regarded vacation/second home type of area. We have a very "localized " real estate market for that reason.

Any thoughts appreciated on this situation. Trying to gain some clarity on a good decision.