Question is should I stay with my townhouse that has a 5.25 percent interest rate, 15 year term vs buying a home flipping it and repeating the process. which would be more lucrative in a ten year period?
Don’t understand the question, and no way to answer it anyway since we don’t know where you live, the values of the properties, or your ability as an investor and money manager.
If you’re living in the townhouse, why is it a choice between it AND buying a home to resell? Why not do both?
Confused at this point,
Raj
I understand ,let me clarify,I live in North Virginia, my town house is worth around 360,000, my payment are 1800 a month, owe about 180,000, I have fairly good credit, I would like to keep my town house and purchase a single family fixer upper(can purchase one for about 350,000-400,000), but just have enough to cover the mortgage for my townhome. I am up for any suggestions
A fixer-upper is going to cost you $350-400K? What’s the expected return on that kind of property?
Anyway, quick suggestion.
A 100% HELOC or cashout refinance on your townhouse will get you about $180K.
Do a 100% no-doc investor loan on your investment property.
Total payment together, including taxes and insurance shouldn’t run more than $6K a month, but we’ll use $7K just in case.
$180K divided $7K = roughly 25 and half months of payments.
Do you think that you can resell the investment in 2 years?
Raj
Great advice thank you
I’m still curious. What kind of return are you expecting on a $350-400K rehab purchase?
Raj