Hi everyone.
I am currently living in New York City. My parents bought a house in 1999. It is a legal two family house in a very nice section of the bronx. They owe about 190000 on there mortgage. Comps in the area for a similar two family house are anywhere from the lowest being 520to 680.From MLS
They are thinking of selling the house and moving to Texas.They talked to a real estate agent and they said 600 is realistic and could probably be in contract by May due to the amount of work done to the house:
New tiled bathroom with two person whirlpool tub
Two additional bedrooms added into the basement.
bathroom added to basement with stand up shower
new kitchen with new cabinets and counter top.
Once sold, they would take the 600 pay off the mortgage, leaving roughly 400 averaging 10 in misc costs,buy a new house in texas averaging 250-300 leaving about 100 left. They want to take this money along with there credit which is in the low 700 for both of them and invest in real estate out there.
Should they pay all cash for the new house in texas? Are there any advantages or disadvantages to this?
They will also be quitting there jobs in Ny but already have some offers for new jobs down there.
Any opinions and suggestions are welcome such as any thing to look out for, whether or not to use the real estate agent,or any comments on what you would do in this situation.
Thanks and look forward to your responses
Kevin