$cott
2006-04-17 05:04:40 UTC
I am looking to gather as much opinion for a client that undecided on
what to do relative to her intent to build a new home. She currently
owns two properties (with mortgages; one she lives in and the other she
rents out) and doesn't know if she should:
a. Rent out the two units and finance the construction of her new
home.
b. Sell both of the existing properties to fund (in cash) the
construction of her new home.
c. Sell one of the existing properties and rent the other and finance
the construction of her new home with a larger then normal down
payment.
What would you do (and tell me why)?
Please assume that the all conditions are ideal, i.e., she can rent out
both properties for a positive cash flow, she has the werewithal to
carry the third mortgage, etc. when sharing your opinions.
Thanks for all the input in advance.
Regards,
what to do relative to her intent to build a new home. She currently
owns two properties (with mortgages; one she lives in and the other she
rents out) and doesn't know if she should:
a. Rent out the two units and finance the construction of her new
home.
b. Sell both of the existing properties to fund (in cash) the
construction of her new home.
c. Sell one of the existing properties and rent the other and finance
the construction of her new home with a larger then normal down
payment.
What would you do (and tell me why)?
Please assume that the all conditions are ideal, i.e., she can rent out
both properties for a positive cash flow, she has the werewithal to
carry the third mortgage, etc. when sharing your opinions.
Thanks for all the input in advance.
Regards,