Help! Big Decision!

[littleroc02us]

You are forgetting the risk. What if your job doesn't work out or you don't like Arizona, your out 40k and you still have the unsold house in California. Don't borrow against your house, ever!

[bjl584]

May I ask why you need to borrow $40K against your house to pay rent in AZ? I'm assuming that you will both be employed. Can't you adjust your budget when you get to AZ and use your incomes to make rent? Forgive me if I missed something in your posts, but that seems more logical than taking out a HELOC to pay rent.

[jpg7n16]

May I ask why you need to borrow $40K against your house to pay rent in AZ? I'm assuming that you will both be employed. Can't you adjust your budget when you get to AZ and use your incomes to make rent? Forgive me if I missed something in your posts, but that seems more logical than taking out a HELOC to pay rent.

Her dad is suggesting that owning the home another year will increase the value of the home enough to make up more than the difference.

If she borrows the $40k, she will have enough cash to pay both the rent and the mortgage. Without it, they likely couldn't cashflow both of them.


It's pure speculation, and I don't like it.

So I stand by my "sell the house before you move" recommendation.

[bjl584]

Her dad is suggesting that owning the home another year will increase the value of the home enough to make up more than the difference.

If she borrows the $40k, she will have enough cash to pay both the rent and the mortgage. Without it, they likely couldn't cashflow both of them.


It's pure speculation, and I don't like it.

So I stand by my "sell the house before you move" recommendation.

I don't like that plan either. Keep in mind that her Dad is a successful business owner, and if he made a deal like this and it went south, he would most likely be able to recover rather easily. He is probably giving advise based on himself and his own success and financial positions. But, if something like this went sour on the average person living paycheck to paycheck, it could mean total financial ruin.

[jpg7n16]

^^^

100% agreed

[littleroc02us]

I agree, sell the home first.

[cypher1]

I say rent first, but if that's too much work, sell Sell SELL! Sorry, had to do that

[kork13]

I'm with cypher -- if you can, it would probably be most advantageous to rent out your CA home. I totally understand not wanting to try managing a property from another state. One thing you can look at is hiring a property management company. They do typically charge ~10% of the rent, but they take care of ALL the day to day issues of managing the rental. They'll find renters, do all the lease paperwork, take care of any repairs, and so on. It's a good option (IMO) for someone living outside the state their home is in. By renting out the CA home, you maintain ownership, receive the rental income, and the house will be taken care of while you're gone.

However, if you can't rent it out, or are unwilling to, definitely sell it. If you aren't going to stay in AZ for very long, don't buy a house there. If you'll be staying for at least 10-15 years, then sure, you can consider buying... but just be careful to get something you really can afford.

[cornered in CA]

Alot to think about. Thank you to everyone for your advice....although no decision had been made every opinion helps.

[cornered in CA]

Alot to think about. Thank you to everyone for your advice....although no decision had been made every opinion helps.

[maat55]

I would not count on home prices going up anytime soon, I would sell.