What would you: 2 average houses or 1 dope house?

Oracle xGkE01
Feb 7 20 Comments

We have 2 options in front of us: (Bay Area)

1. Keep our 3br townhouse in a good Santa Clara neighborhood, rent it out and buy a 1.5 million single family house in a decent school district in Fremont

OR

2. Sell the townhouse and buy a 1.8-1.9 mil bigger single family house in mission hills (Fremont)

Any advice from past experience? Pros and Cons would be greatly appreciated!

Thank you in advance

comments

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TOP 20 Comments
  • If you want a tenant, hit me up :)

    To answer your question with a question, is the 1.8 mil home your dream home?

    And for my two cents... hold onto the townhouse for now. It’s not really a sellers market at the moment.
    Feb 7 2
    • Oracle xGkE01
      OP
      It would be close to a “dream house”
      Will def hit you up and thanks for the quick response :)
      Feb 7
    • No problem. A friend of mine is in a similar situation and they decided to hold onto their other property as a rental.

      But look into the risks of owning a rental.

      I would also challenge you with the fact that there is a third options — which is to buy the 1.5 home, and sell the other property. You could use that cash for other high yield investments and eventually be able to buy the 2 mil home 😉
      Feb 8
  • Microsoft BarFoo
    Rent and let someone else pay your mortgage.
    Feb 7 1
    • Oracle xGkE01
      OP
      That’s what’s tempting! But so is the sexy 1.9 million home in the hills...listen to the brain or the heart
      Feb 7
  • Microsoft quesera
    If both are in Fremont, then rent your townhouse
    Feb 7 1
    • Oracle xGkE01
      OP
      Good point!
      Feb 7
  • Microsoft wksbfm
    I envy you!
    Feb 7 0
  • Lyft swetool
    Just cause you’ve owned a house doesn’t make it a great investment property. Would not recommend doing this until you understand how to analyze real estate investments. Once you’ve done that you’ll realize you’d be better off Deploying that capital elsewhere
    Feb 7 2
    • Oracle xGkE01
      OP
      Deploy capital elsewhere? Examples?
      Feb 7
    • Amazon / Eng
      eisenhwr

      Amazon Eng

      PRE
      Google
      eisenhwrmore
      Hire a property manager, it's not that hard.
      Feb 8
  • Bank of America Quackers
    Wheres the tc or gtfo comment?
    Feb 7 1
    • Oracle xGkE01
      OP
      Oh! Here you go: GTFO! You’re welcome lol
      On a serious note, TC = 400K
      Feb 8
  • Facebook YtrQ07
    If you are okay with covering for mortgage when vacant, rent it. Over the long term, 2 houses will give you more gain since you are taking risk with higher mortgage amount.
    Feb 7 1
    • Oracle xGkE01
      OP
      Did not think of that scenario...so thanks 👍 will go back and do the math
      Feb 7
  • Fitbit
    iloceyo

    Fitbit

    PRE
    HotelTonight
    iloceyomore
    You will get more than your monthly mortgage by renting house one I think, you can use the extra cash to also buy the 1.9 mil. Just guessing since I don’t know your finances. If anything you can sell it after
    Feb 7 1
    • Oracle xGkE01
      OP
      With property taxes, the first house would pretty much pay for itself with not much to spare
      Feb 8
  • Amazon
    menthos

    Amazon

    PRE
    Microsoft, Oracle
    menthosmore
    If I were you I go with option 1
    Feb 7 1
    • Oracle xGkE01
      OP
      Thanks! We bought the 1st townhouse 7 years ago in a down market...lots of memories too
      Feb 7
  • Workday yooloo
    Have you decided OP? Is this household TC?
    Apr 7 0