Bought my house 5 years ago for $114k With 2.875% interest. Bought a second house that is a money pit and needs a full remodel. For $140k at 2.875%
Just need some third party pros and cons.
I have a offer from Zillow for 249k but then I have to rent at $1800 for a year while the other house is made livable(contractors haven’t even given a quote after a month)
Alternatively I could refinance the house for $200k Live in it until the other house is done then rent for a few years to make up the potential loss in market value since it most likely will crash. I would have $75k in cash and no debt outside the two mortgages.(I can afford this)
The part of me that hates debt leans towards selling. I would have only a $140k mortgage on my new house and $120k in bank for remodeling and no other debt.
But the part of me thinks having rentals eventually would surpass selling and gain profit.
Am I over thinking and should definitely go one route?