Selling two homes to buy one

Las Vegas market. Looking to sell my family’s home and aging father in law’s home to purchase a larger home together. Due to a refinance on our home last August, we cannot sell until September of this year. Trying to get a firm idea down of what we can accomplish. I have done some light research comparing estimates across a few sites, and an automated estimate from our mortgage company to get rough ideas on home prices. Have not spoken to an agent yet. We purchased February ’20, right before everything went crazy.

Our home: 3/2 from 2002 in a fine neighborhood, owe 282k, 2.875%, average estimate 420k, estimated 40k in seller’s costs, potential profit of ~100k

His home: 3/2 from 1970 in a poor neighborhood, owe 112k, 6.25%, average estimate 292k (!), estimated 30k in costs, potential profit of ~150k

I am not totally sure how realistic those numbers are. I feel as though both homes are not worth those numbers, his especially. I am under the impression that if our home is overvalued at 20% in this market, then his is likely worse off. Desperation in the market will prop up less desirable homes more than average ones is my thinking. I figure we strike while things are hot, even if we are overpaying for our next home a little bit, while everyone is in good health and life is relatively stable atm.

Our income is around 175k on paper (I am in the service industry and my income on paper is about 1/3 of what I actually make). We make about 17k a month combined, though obviously his 6500 income (pension etc) can’t be relied upon for the next 30 years.

My thinking with all of this is we cash out both homes, find somewhere to crash for a month or so (we have big families) and throw 200k down on an 800k home and have a 600k loan (3900 monthly at 6%, per online calculators). Am I crazy? It all makes sense to me, and this would be our home until our youngest kid, the 1 year old, moves out and we downsize in 20 years. I am worried about throwing away our very cheap 2.875% rate. Also worried about buying at the peak of the market (or right after). Can anyone shed light on all of this? I’m sure there are things I am overlooking here.

submitted by /u/3691229
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Las Vegas market. Looking to sell my family’s home and aging father in law’s home to purchase a larger home together. Due to a refinance on our home last August, we cannot sell until September of this year. Trying to get a firm idea down of what we can accomplish. I have done some light research comparing estimates across a few sites, and an automated estimate from our mortgage company to get rough ideas on home prices. Have not spoken to an agent yet. We purchased February ’20, right before everything went crazy. ​ Our home: 3/2 from 2002 in a fine neighborhood, owe 282k, 2.875%, average estimate 420k, estimated 40k in seller’s costs, potential profit of ~100k ​ His home: 3/2 from 1970 in a poor neighborhood, owe 112k, 6.25%, average estimate 292k (!), estimated 30k in costs, potential profit of ~150k ​ I am not totally sure how realistic those numbers are. I feel as though both homes are not worth those numbers, his especially. I am under the impression that if our home is overvalued at 20% in this market, then his is likely worse off. Desperation in the market will prop up less desirable homes more than average ones is my thinking. I figure we strike while things are hot, even if we are overpaying for our next home a little bit, while everyone is in good health and life is relatively stable atm. ​ Our income is around 175k on paper (I am in the service industry and my income on paper is about 1/3 of what I actually make). We make about 17k a month combined, though obviously his 6500 income (pension etc) can’t be relied upon for the next 30 years. ​ My thinking with all of this is we cash out both homes, find somewhere to crash for a month or so (we have big families) and throw 200k down on an 800k home and have a 600k loan (3900 monthly at 6%, per online calculators). Am I crazy? It all makes sense to me, and this would be our home until our youngest kid, the 1 year old, moves out and we downsize in 20 years. I am worried about throwing away our very cheap 2.875% rate. Also worried about buying at the peak of the market (or right after). Can anyone shed light on all of this? I’m sure there are things I am overlooking here. submitted by /u/3691229 [link] [comments]

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