I own a condo right now and have some equity in it and going to try and buy another one. I just wanted any investors opinion on whether I am too leveraged with a possible new purchase.
Condo I own: AV $245000 loan balance : $159000
loan is in the second year of a 7/1 arm rate at 5.375
I eat about 400 a month on this one bc of HOA fee and break for good renters.
New Condo: Purchase Price $235,000- great area and i expect it to appreciate 10-15 percent annually for next 5 years. My goal is to own it for less than five and just rent. I would be eating about $250 a month bc of a HOA fee.
My plan is to have somone cosign with me to have the DTI but I was going to refinance, pull out some equity for downpayment of new condo. However, its pretty tight bc I have 10k balance on HELOC on the condo. I figure I keep the 20% on the existing condo and go 10% on the new one. Any thoughts by the community would be appreciated.