youAtExample OP t1_j6mtij8 wrote on January 31, 2023 at 1:23 PM

Reply to comment by surfingonmars in I'm considering selling my home, renting for a year, then buying my second home in order to avoid some of the stress of trying to sell and buy at the same time. Is this a bad idea? by youAtExample

To have enough cash to make a down payment on the new house.

nversace t1_j6my2v2 wrote on January 31, 2023 at 2:00 PM

You probably should look at these factors:

Is moving a hassle for you? For me it was me, my wife, and my adult son. I was only 42 so packing up our house and putting half in storage and furnishing the apt was not a big deal with 3 adults. We also ordered all new furniture to be delivered to new house. Moving was not an issue for me. It may be for you.

Look st the market near you. Check home list prices over the last 6 months. Homes around me have stabilized, rates probably won’t adjust dramatically down or up this year. You could have a different market. You probably won’t get an amazing deal, but the days of getting 60k bumps in home values every 12 months is pretty much over for now.

Can you get a tenant friendly lease? My complex was very nice - in quality and flexibility. I carried out the lease so I could spruce up the new place without all the clutter.

Bridge loans and carrying both mortgages are an option. If you buy before you sell, can you cover that cost? You may have to cover rent, too. I did this in a VERY competitive market, bids were all over asking, so I tried to make myself as attractive a buyer as I could while mitigating risk. It worked for me, may not for you. If you sell before you buy, you may be moving anyway unless you can rent back.

youAtExample OP t1_j6nhwtq wrote on January 31, 2023 at 4:15 PM

Thanks for taking the time to respond.

It will definitely be something of a hassle. It's me, my wife, and our baby. I'm planning to use a moving company.

Maybe I should look into a bridge loan. I could technically handle both mortgages for some time, but I don't have the cash for 20% down payment, which I want to do. I'm moving from a fairly high cost of living area to one that's a bit lower, about 2 hours away.