For the homeowners, do you think it is wise to flip your home for a small house?

[Alexandoy]

This idea came to my mind when I was doing the computation for my sustenance. The big money is coming but I don't have the slightest idea of how much I would receive as benefit related to my wife's employment. Our home is a good one that is constructed on a 280-square meter lot. It has 4 rooms and a garage that can accommodate 2 cars. It can be rented out for a good amount that can provide me with my livelihood. However, renting out our present home will necessitate me to rent an apartment or perhaps a room (for purpose of frugality). It is quite pathetic to do that but if my future is at stake then I would have to eat my pride to be renting in a small house or a room.

Perhaps the best option that was on my mind last week was flipping our house. I would sell our house and buy a smaller one. If that smaller house is located in the rural area then the more that it would cheaper and I would have excess funds from the proceeds of the sale of our present house. That is a good idea although now it is moot that I do not need to do it. Next week when I receive the big money another option would be pursued and that is buying a townhouse to be rented to a tenant.

 

[Bajibb]

Good idea...that will generate good income than the one at rural area.

 

[goodmoneygoodlife]

Well if you don't want to sacrifice your quality of life (or maybe the house is too big -- I don't know your situation), you can also just do a refi at a lower interest rate and buy some high dividend fund like $QYLD and make a spread on the rates?

Depending on your area, you might do research on Airbnbs for rentals as opposed to just regular long-term rentals. More headache, but more income. Just a thought.

 

[funmi]

I believe in the idea of using what you have to get what you want. It all depends on you. If you need money and you have the opportunity of owning a house that can fetch you good money when you put it for rent, then what are you waiting for? You can go ahead to move to a smaller house.
More so, since you are not selling it out, you are just putting it for rent, then it is wise to do so. Your house is still your house, you will only assume you are just going to stay away for some times and then come back later. Then if you are lucky you can also build another house with the money gotten from the rented apartment or house. It is very wise to move to another smaller house if it is based on business. You will definitely gain from it.

 

[btaliat]

I don't really think that way. I don't really sell off property. What if I sell it off and the money I get from it is not the same amount I used while building the house that I want to sell. It is better if I can lease out the house or even rent it out. This will give me more money and the house will still be mine.

 

[Setho]

This is going to be a very tough decision but I believe that ultimately it is going to be decided by the situation on ground. If I am going to sell a big house for let's say ten thousand dollars and I will be able to get another house in a good location for $7000 and it will be comfortable for me and my family, it is a decision that I will take and then invest the remaining 3,000 Dollars into something that I think will bring me passive income for a long period of time. This is the only option.

 

[Shaf]

I'm always one to prioritize comfort, though I know and also respect investment in high return ventures.

If you won't be severely inconvenienced by selling your house for a smaller one, it would be good, especially if you can get something similar in the rural area for less and still have sufficient funds left to invest. I have a large family so I can't do that.

Also, why not wait since there's an alternative source of funds that you can use coming in later? That would seem to be a better choice since you may not find a buyer on time and might just waste efforts.