I am 25-years old. My income is approximately $100,000 per year now (only $50,000 last year). I am self-employed (Internet business).
On April 30, 2009, I purchased an unfinished home for $155,000. I put $31,000 down, and another $30,000 into finishing the home (carpet, granite counters, plumbing, etc). The home is brand new and in VERY good condition.
I borrowed the $61,000 that went into the down payment and finishing of the home on my Visa credit cards. I still owe $16,953 at 11.99% and $34,360 at 7.74% on my two Visa cards. However, based on my new income, it's possible to pay off these two Visa cards within 2-years. I have no financial issues or problems making the payments.
The mortgage is only $120,000 (4.25% APR at 30-years fixed), even though the home is worth about $200,000. Remember, I still owe $51,313 on my two Visa cards that went into the home. So I don't really have much equity.
I am about to file my 2009 tax return and was planning on claiming the $8,000 first time home buyers credit.
However, I just accepted a job on the east coast and will be moving to Maryland. My new job will only pay me about $45,000, but I will get up to $70,000 within two-years. I will also still make $100,000+ this year from my Internet business.
Should I sell my home or rent it out? The home is in perfect shape, with wood floors and all white carpet. If I sell it, I can expect to gross about $200,000 to $220,000, but I'll pay huge real estate fees for the sale. I will also have to return the $8,000 first time buyers credit which I am about to claim.
If I rent it, I'll still owe the $51,313 on my Visa credit cards, but I can easily pay these off within 2-years with my new income.
What is the best move based on my young age? I am never coming back to this state again, so if I rent it, I'll have to hire a property manager and pay them about 10%.
Your thoughts?
On April 30, 2009, I purchased an unfinished home for $155,000. I put $31,000 down, and another $30,000 into finishing the home (carpet, granite counters, plumbing, etc). The home is brand new and in VERY good condition.
I borrowed the $61,000 that went into the down payment and finishing of the home on my Visa credit cards. I still owe $16,953 at 11.99% and $34,360 at 7.74% on my two Visa cards. However, based on my new income, it's possible to pay off these two Visa cards within 2-years. I have no financial issues or problems making the payments.
The mortgage is only $120,000 (4.25% APR at 30-years fixed), even though the home is worth about $200,000. Remember, I still owe $51,313 on my two Visa cards that went into the home. So I don't really have much equity.
I am about to file my 2009 tax return and was planning on claiming the $8,000 first time home buyers credit.
However, I just accepted a job on the east coast and will be moving to Maryland. My new job will only pay me about $45,000, but I will get up to $70,000 within two-years. I will also still make $100,000+ this year from my Internet business.
Should I sell my home or rent it out? The home is in perfect shape, with wood floors and all white carpet. If I sell it, I can expect to gross about $200,000 to $220,000, but I'll pay huge real estate fees for the sale. I will also have to return the $8,000 first time buyers credit which I am about to claim.
If I rent it, I'll still owe the $51,313 on my Visa credit cards, but I can easily pay these off within 2-years with my new income.
What is the best move based on my young age? I am never coming back to this state again, so if I rent it, I'll have to hire a property manager and pay them about 10%.
Your thoughts?
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