Ok, I so rarely find myself unable to make a decision, but I need input from like minded folks.
My hope (yes, just a hope at this point) is to buy my own place this summer when my lease comes up. I miss having my own place, growing my own food and just generally not having people above me making noise at 2AM.
I called the bank yesterday for some informal information. My Credit report which I had been working very hard on is a shoe in for the best rate they offer. my Debt to income ratio is in the single digits. No problems there. I am looking for houses in the 100K mark although the bank really wanted me to look more into the $150 range. I don't want to be house poor, so that ain't happening. A 100K house will be just fine, I can also build on or upgrade it as I have cash in hand.
So, here lies the issue. I need about 10K for down payment and closing. BF says that in this market the sellers would pay closing as they did his. Right now I am in the situation that I have almost no cash.
I have a rental property that I own outright that I should be able to sell for a decent down payment. Doing so would cut my income by $350.00 a month. I have a 401K loan that I pay $400 a month that I could pay off with the proceeds as well. So my Debt to Income would still be great, I would just loose the $350 a month income. Also, don't really care about paying off the 401K loan as I am paying the interest to myself not wasting it to a third party.
What would you do? Sell everything I can, work really hard and then when my lease comes up sign a 6 month lease at a higher rate to save up enough for a house in 2012 or go ahead and sell the rental and buy a house in 2011?
My rent is currently about $650 a month and a 6 month lease would probably be $700 a month.
My hope (yes, just a hope at this point) is to buy my own place this summer when my lease comes up. I miss having my own place, growing my own food and just generally not having people above me making noise at 2AM.
I called the bank yesterday for some informal information. My Credit report which I had been working very hard on is a shoe in for the best rate they offer. my Debt to income ratio is in the single digits. No problems there. I am looking for houses in the 100K mark although the bank really wanted me to look more into the $150 range. I don't want to be house poor, so that ain't happening. A 100K house will be just fine, I can also build on or upgrade it as I have cash in hand.
So, here lies the issue. I need about 10K for down payment and closing. BF says that in this market the sellers would pay closing as they did his. Right now I am in the situation that I have almost no cash.
I have a rental property that I own outright that I should be able to sell for a decent down payment. Doing so would cut my income by $350.00 a month. I have a 401K loan that I pay $400 a month that I could pay off with the proceeds as well. So my Debt to Income would still be great, I would just loose the $350 a month income. Also, don't really care about paying off the 401K loan as I am paying the interest to myself not wasting it to a third party.
What would you do? Sell everything I can, work really hard and then when my lease comes up sign a 6 month lease at a higher rate to save up enough for a house in 2012 or go ahead and sell the rental and buy a house in 2011?
My rent is currently about $650 a month and a 6 month lease would probably be $700 a month.