Hello,
Here is our situation.
Our current primary home is valued at 326k (based on zillow); outstanding loan balance is 205k, 15 yrs fixed @ 2.8%. Monthly payment is 1500 + tax = 1900. We wanted to find a bigger home in a better school district. So, we tested the water by posted our house on Craigslist for rent @ 1900/month, 2 yrs contract agreement required. We received at least 10 calls within 4 hours; they're fighting to check out the house and a few were interested in a 2 yrs contract or longer. Didn't know the rental market is so HOT
Is it wise to take out 50k home equity loan and use it as down payment on a new house, rent out the current house? Basically, rental income will cover the mortgage.
What are the advantage and disadvantage? (I understand every situation is different, just share your thoughts
)
Thank you.
Here is our situation.
Our current primary home is valued at 326k (based on zillow); outstanding loan balance is 205k, 15 yrs fixed @ 2.8%. Monthly payment is 1500 + tax = 1900. We wanted to find a bigger home in a better school district. So, we tested the water by posted our house on Craigslist for rent @ 1900/month, 2 yrs contract agreement required. We received at least 10 calls within 4 hours; they're fighting to check out the house and a few were interested in a 2 yrs contract or longer. Didn't know the rental market is so HOT
Is it wise to take out 50k home equity loan and use it as down payment on a new house, rent out the current house? Basically, rental income will cover the mortgage.
What are the advantage and disadvantage? (I understand every situation is different, just share your thoughts
Thank you.