Hey y’all, my fiancé and I bought our house in West Nashville a few years ago. We always wanted something with land, but at the time needed to be close to town and had bad luck with inspections/bidding war issues in a sellers market. We ending up buying ours before it was built, a “tall skinny” 2br 2.5ba in a planned neighborhood as a starter home - to build equity and stop flushing money on rent. We now have a really nice chunk of equity (value up 40%) and are starting to look at some acreage. The decision now is whether to sell our current house or keep it as a rental property (edit: by lease - no AirBnB). Here are my questions:
a) if keeping current house as a rental, can unproven, projected rental income be counted in our favor with the new mortgage lender? Or would it need an established income-producing history?
b) if keeping, is it a greater benefit to leave the equity in the rental, or take it out for a bigger down payment on the new property? (We have money saved for the new down payment, so wouldn’t NEED the equity to make the move)
c) or is the rental not worth two mortgages and we should just sell and buy?
Thanks in advance from a some uncertain young homeowners!
a) if keeping current house as a rental, can unproven, projected rental income be counted in our favor with the new mortgage lender? Or would it need an established income-producing history?
b) if keeping, is it a greater benefit to leave the equity in the rental, or take it out for a bigger down payment on the new property? (We have money saved for the new down payment, so wouldn’t NEED the equity to make the move)
c) or is the rental not worth two mortgages and we should just sell and buy?
Thanks in advance from a some uncertain young homeowners!
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