So, I just bought a new house 2.5hrs away from current home and will be moving. I borrowed the funds from my parents to get settled in. But it got me thinking… when I start a new mortgage to pay my parents back, I was going to use the equity from the old house as the down payment for the new house and pay off all other debt… BUT, since my current house is financed at 3.5% and currently owe $135k (estimated value approximately $200k), I was thinking about somehow making a rental property out of it due to it being locked in at a low 20 yr fixed rate (18years left).
selling the current house, paying off debt, having down payment money and paying parents back is the easy button. Keeping the property and turning it to an investment property would certainly make more $$ but financially run me thin.
id like some input (pros/cons) on this.
thanks,