Should we move into a bigger home or buy an investment property?

Although the decision is difficult to address with limited information, I think a general rule of thumb would be to invest in your future retirement prior to obtaining new material possessions. Right now you are likely to get a much greater return on a fourplex investment than you would in the future based on rising rates and home prices.Now again, there are a lot of things to consider that would change my opinion, but here are a few to consider.Is the bigger home a necessity because of a growing family or home business? If so, then the immediate need may outweigh the long-term financial gain.Is the fourplex worth significantly less than your new primary home would be? If so, you may want to lock in the lower rate on the larger loan amount.Will your debt-to-income ratios be tight? If so, then you may want to obtain the rental first so that you can offset the ratios with the new rental income and still afford a new home in the future.Can you make a similar profit retaining your current home as an investment instead of a fourplex? If so, then perhaps you should just buy the new home and use your current home as a part of your portfolio.These are just examples of a couple questions, but I would highly recommend contacting us or someone else who will go through your entire list of goals and needs to ensure you make the wisest decision.Happy house hunting!

It can certainly be a tough decision especially with the current market conditions. Based on your statement, I think the first option would be to try and obtain a preapproval for both properties. This way you can see exactly what your realistic options are financially and then try and find a happy solution for you and your family. After all, a happy wife is indeed a happy life. I would contact someone when you have a few free minutes to just go through all of the variables and determine if you can either qualify for both properties or easily eliminate one of the options. This will help give you the tools you need to approach the subject delicately with your wife and make sure you both can make the most informed decision possible. Feel free to give us a call or talk to a preferred lender of your choice. Whoever it is, just make sure you feel confident that they are thorough and diligent in reviewing your options. Thanks again for the question and I hope you have a great evening!

Dan offers some great points to consider. Can you turn your current home into an investment property by renting it out and purchase a new larger home for you and your wife? That way you could bring in additional income to pay for your new mortgage or put aside in savings and keep your wife happy. Call a lender to go over your options and see what you qualify for if buying an investment property or if buying a new home. We are a California mortgage banker - feel free to give us a call to explore your options at no obligation.

Not enough info to properly answer your question, but in general, adding rentals into your portfolio is not a bad idea, but If you've never dealt with tenants before, you would want to consider the cost of professional management into your calculations.. Everything is great until the rent check doesn't show up.. and California has some pretty "Tenant Friendly" laws, so evictions could be troublesome.. in fact, the eviction process in CA can take as much as 6 months.. (remember the movie "Pacific Heights" with Michael Keaton).. Here in AZ, you can have the eviction complete in as little as 3 weeks.. but most states are not the same.. I've been a real estate investor for 30 years here in AZ, and will tell you that a single family home is a much better investment than multi units.. at least here in AZ.. better quality tenant, and easier to sell when that time comes.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

The 4-plex will really depend on the rate of return with current rents and expenses. I would ask your Realtor or loan officer to put some numbers together for you to see if it makes financial sense now and in the future. Personally I love 4-plex investment properties and think they can be a great option for a long term investment portfolio. However, it all depends on the numbers. Or you can move to Colorado and get the same size house and 4-plex for half the cost. :)Dan brings up some great stuff to think about too. Best wishes, Sean