Should we rent our house out and buy a larger home? Or, should we stay in the house and add more rooms in the basement? Either way, we’ll be spending money. If we buy another house, we’ll need money for a down payment and closing costs. Plus, we’ll have to do some touch up work on our current home before we could rent it out. If we added rooms in the basement, it would cost us just as much and it wouldn’t add much value to our house in todays market.
Right now, we’re leaning more toward buying a larger home and renting out our current home. With the market and mortgage rates at a new low, this would obviously be a great time to buy. It is not a good time to sell, however. So, that is why renting our house seems to be our best option. Plus, we wouldn’t just be breaking even on renting it out. We’ve estimated a rental INCOME of around $200/month.
There is a third option of course. It’s an option I don’t really like to think about. It involves spending another winter couped up in an 1100 sq ft house with 6 people. I would say that our health depends on us getting into a larger space BEFORE the winter colds and the dreaded flu hits. It is a known fact that people get sick more often when they work or live in crowded conditions. I would also like to put in an extra vote for my sanity. We should definitely get into a larger space BEFORE winter.
In order to do that, we must first consider our buying power. What can we afford? Sadly, we do not have much of a down payment. In fact, we don’t have ANY down payment. So, we would have to put aside our surplus for a couple of months instead of paying down our debt like we had wanted to do. We may even have to borrow part of the down payment from a family member. YUCK! I don’t like thinking about that. But, that’s what family’s for, right? Just kidding of course. That’s why it makes me sick just thinking about borrowing money from family. I don’t like owing anyone anything. I would much rather be the one lending out the money. I suppose if someone we trust just happened to have, o let’s say, an extra $10,000 just laying around, they wouldn’t mind earning something like 3% interest on that money.
Definitely something we’ll have to pray about. In fact, I think I’ve been praying about this every day now for about a month. I’m not sure if the Lord is answering my prayer now, but we are supposed to go look at a house this evening. It is a little over our budget, but it’s a short sale. So, maybe the bank will consider a lower offer. Like $20,000 lower than the asking price. Hmmmm, not so sure. But, just looking can’t hurt, right? I guess we’ll see.