Buying 2nd home – sell or rent 1st home?

My wife and I are in a townhome in Austin tx we bought for $600k three years ago and could likely sell it for $900-$950k, or rent for about break even cash flow today.

We’re looking to buy a long term (maybe forever) home where we can raise kids. We have been trying to stay under $1.5M, but are seeing we may need to go as high as $1.7M to get the home we really want in Austin.

-Our income varies as we’re both in sales – $400-$600k/year -currently hold $270k cash -have $750k in 401k and non-retirement brokerage accounts. Can borrow $200k+ on a credit line if need be to help with down payment/closing cost

Long term we want to diversify into SFH rentals since we have so much tied up in equities so renting our 1st home makes a lot of sense. At the same time, it could make a lot of sense to sell our 1st home since the market exploded recently and we would not need to pay taxes on the gains. We could use the money to help with the down payment instead for taking out a line of credit.

We also would really love to stay under $10k in monthly home expenses (closer to $8-9k is ideal). We’re debating selling our 1st home for the cash, and putting as much as 25% down to help with the monthly. Or bite the bullet and buy a house we’re far less excited about.

Are we nuts to A) sell an amazing rental home in a hot market like Austin. And B) for putting more than 20% down to help us ease our monthly payments?

Ultimately we’re trying to balance making the smart financial decision with lifestyle choice.

Any thoughts and advice are much appreciated!!

submitted by /u/Bogaboard88
[link] [comments]

My wife and I are in a townhome in Austin tx we bought for $600k three years ago and could likely sell it for $900-$950k, or rent for about break even cash flow today. We’re looking to buy a long term (maybe forever) home where we can raise kids. We have been trying to stay under $1.5M, but are seeing we may need to go as high as $1.7M to get the home we really want in Austin. -Our income varies as we’re both in sales – $400-$600k/year -currently hold $270k cash -have $750k in 401k and non-retirement brokerage accounts. Can borrow $200k+ on a credit line if need be to help with down payment/closing cost Long term we want to diversify into SFH rentals since we have so much tied up in equities so renting our 1st home makes a lot of sense. At the same time, it could make a lot of sense to sell our 1st home since the market exploded recently and we would not need to pay taxes on the gains. We could use the money to help with the down payment instead for taking out a line of credit. We also would really love to stay under $10k in monthly home expenses (closer to $8-9k is ideal). We’re debating selling our 1st home for the cash, and putting as much as 25% down to help with the monthly. Or bite the bullet and buy a house we’re far less excited about. Are we nuts to A) sell an amazing rental home in a hot market like Austin. And B) for putting more than 20% down to help us ease our monthly payments? Ultimately we’re trying to balance making the smart financial decision with lifestyle choice. Any thoughts and advice are much appreciated!! submitted by /u/Bogaboard88 [link] [comments]

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