Hey guys, I am looking for some math behind my numbers to see what options are available.
I currently own a townhouse, and I owe 67k against it. I am a bit lost on what exactly is the best course of action based on mathematics.
Costs of the townhome-
$67,000 mortgage (15 year, 3.25% payment $650)
$225 monthly association dues.
$300ish a month in bills<- presumably the tenant would cover these
What I could get for it....
SELL: $145,000 -> $160,000 , so I could walk away with around 70-90k depending on what I get, and what the sale costs...
RENT: $1200 ->$1300 per month.
I could buy another house for myself to live in but it would cost anywhere from $230,000 to $275,000 for a single family. I don't mind continuing to occupy the townhome but in EITHER case it requires about $8,000 in repairs.
I am a bit torn on my options. My guess is that I could net ABOUT $1,000 a month from rent (minus any maint so maybe average 800?). The $1000 then needs to pay the $650 mortgage, so the cash flow would be around $350. Though, most of the payment is principal.
I don't know if its worth it to take that on with the costs of another (more expensive) house.
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I suppose the third option would be selling it and buying another house, but this option would be more about lifestyle than money, I can't see a reason why buying $100k more house would help my FIRE plans.... UNLESS losing the $200 association dues helped the picture that much... but that cost will be replaced by having to mow my own lawn, replace my own roof/siding ectectect
Thoughts? and, thanks for the input!