Buying or Selling a Home/home improvment
I hope all is well. I need your help regarding our home improvement.
We bought our current house 8 years ago with the hope to do some renovation to make it functional for us. We have about 50,000-60,000 that we can use as home equity (we hope). However, to make it really functional that we can live in it we need about 120,000-130,000 dollar.
In the other hand, we have a town-house that we have put for rent, but we can not get home equity on it since it is considered a business type of property. Even if we do, we have only 10,000 or so on it.
My question is that, is it to our benefit to sell our current house and use our rental house as down-payment to buy a new house that is functional for us? We really need to make the house functional. It is going out of hand. We rather do one time improvement and get over with it. We can not borrow money or any thing. We need to either sale the house or use our rental house as down-payment to get a new house. We live in MA.
Any suggestion will be appreciated.
It looks like you're really learning the American way of life, Shideh. If functional is really important to you, then I would use the equity in your present home to buy your next house. Let the rental remain a rental, because if you handle it correctly, the townhouse could help you to eventually create a nice growing real estate rental business.
Trouble is, you would need to sell your present residence first. And that is okay. Just make sure the real estate agent you do use understands what you are trying to accomplish. In buying your next residence, the seller is not going to be too receptive to have to wait until you sell your house.
You're going to have to spend some money to make your residence saleable . . . and then you should put your present house up for sale. Just make sure that you do not accept any offer to sell without making it subject to you finding another home to purchase. Your real estate agent should be able to help you in that end. I do wish you well.