patrick.net

I'm not sure if I understand. You have two houses, and are deciding which one to keep or sell? You are a bit all around, it's hard for me to follow. But you may have overleveraged on liabilities.

Can you clarify a bit please?
House 1 - cost - potential rent income/month.
House 2 - cost - potential rent income/month.
Your income? (pension, 401k, social security, unemployment, nothing?)

Math here is usually simple. Add what you make, substract the liabilities and see if it makes sense. If you plan to rent out, make sure you can survive financially without rental income for a year. At least in our neighborhood rental income is sporadic, some renters end up not paying for 6 month often (no jobs = no income).

P.S. This thread should be in the housing forum.

How old are you? Ever think about going into the military? If not active duty, maybe the guard.

Connecticut Unemployed Teacher says

My kids need a house…

Actually, they like a house. But need? You need a roof over your head, your finances will dictate whether it's yours or the landlord's. If job prospects aren't good, sell. Even if they are good, until you have a job don't count them chickens before they're hatched.

Thanks everyone! I'll repost in housing forum too.

Sorry my post was so confusing. Basically, we want the new larger house. It fits our family and we can afford if I have a job. BUT, I worry the "rental" loan could reset, making it cost more than rent pays. When rates go up it will too. Not sure the rate limit on that 90k...I should check.

At this point, MUST I sell the rental, to kill my exposure? If I don't find a new job and Refi fast to a low rate, the whole things falls apart. I am getting depressed about the time it's taking to get a job....

ok, now to repost in housing.

you took some risks, it didn't pan out as planned. Wants and needs. wants and needs. if you confuse these you may be in trouble. of coarse get employed or change your lifestyle. you can rent yourself right? land lords can rent too,..no shame in that. if you can't pay then don't.

you need good shelter. you don't need a mortgage (you just want one)

Well, teh small house was two bed, we have a boy and girl. We used the basement for our bedroom when they got bigger. My husband is a carpenter, so his work has slowed too. I got a Masters in library science to change careers, right before the crash, which has reduced the need for librarians. These houses are modest, I think we just had bad timing. It seemed like the bottom was two years ago when we bought the bigger house on "sale". Renting out the first, since we built up equity seemed wise.

They don't teach investing or real estate in library science.

Bust thanks for taking the time to write me.

Sounds like you're taking a pilar out this side, putting it another side hoping that will keep the roof from collapsing. But you knew that's not the real solution. Your rent income 1400/mo is barely enough to keep up with 1300/mo plus costs. And you knew you will need money which you don't have when furnance or roof finally give up on you. What's gonna happen when your loan rate resets?

You don't have enough income as you lost your job. Even if you have a job, having two homes at the same time is quite hard w/ teacher's salary, and you're still want something bigger. Nope, that's not gonna happen when you're financially not stable enough.

Put a hold on your hope, want or need whatever that is, and get rid of one of two houses. Get your finance in line first, then resume dreaming later. Your kids need a home to stay, not two homes their parents can't even handle.

Mr.Fantastic says

I hope you don’ t teach personal finance, or responsibility.

anyone who does teach this is also in trouble I'm sure (The Va jay jay has demands). remember all the experts seemed to get it wrong too.

The only ones I can see who benifited from all of this are those who got out before 2006 (sold)
or never played ball because they couldn't, or didn't want to.

remember sometimes doing nothing ,except saving money , is the best plan IMO! (try and tell that to the Va jay jay though)
bla bla bla!

I dont think you made a bad decision.
Of course keeping both houses would be ideal but if you're counting on appreciation that probably wont happen any time soon. If you're in a bind I would sell the smaller house.

SF ace says

Plus home equity loan 90k, 5.6% interest (variable rate!!!) currently $230/mo.
HELOC of $90K at 5.6% is not $230 a month. You’ll have to clarify the facts regarding your both your loans further to be of any aid.

Maybe it's some sort of creative HELOC where he/she can pay less than interest rate or there is no interest rate for the first few years which means that once it gets refied it will balloon significantly.

Yes csj please clarify the amounts better, just like I asked you in the Misc forum.