Home Selling in Norfolk>Question Details

Ann Marie, Both Buyer and Seller in Norfolk, VA

I own two properties and am selling one, if all goes well, I will have approx. $25,000.00. The money from

Asked by Ann Marie, Norfolk, VA Sat Jan 24, 2009

that sale will be my down payment for another home. My question is this; should I sell my second home, again if all goes well I should walk away with $75,000.00. Should I use all this money for a large down payment or should I keep my second home and rent it out. My mortagage is $618.00 and according to my realtor, I should be able to get $1,250.00 per month. With the state of our economy, I am not sure if I should take the safe road, sell all and have a smaller mortgage payment or continue with the risk. I should add that the first home that I am selling, I have successfully managed/leased out for more than 10 years. Thanks

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Ann Marie
I would refer you to speak with:
Your CPA
Your Financial Planner
A knowledgeable REaltor.

The factors that bear on this question include (but are not limited to )
Your retirement portfolio
Your current financial and tax situation
What your projected financial and tax situation will be when you retire.

Proper planning produces superior results.
0 votes Thank Flag Link Sat Jan 24, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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What's your tolerance? This current market has hit a lot of landlords too just because of renters defaulting because they too are losing their jobs. I'm a full time real estate investor and I implore my wife to keep a rental she has that she sees about the same cash flow each month. Cash flow is king, but for her, she hates the what ifs of being a landlord. So she's dead set on selling. So it's an individual decision, but real estate is all about leverage. Stick with a house you can afford, keep the rental and in the end when it's time to work no more, sell them all and buy a house that you are going to stay in for the rest of your life with all cash. Imagine how nice that's going to be. It's all for a reason, and security later in life is priceless.
0 votes Thank Flag Link Sat Jan 24, 2009
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