Posted by Russ Sims on July 11, 2001 at 01:28:24:
If you’ve only owned your condo for a little over a year you may have insufficient equity to clear your debt and put any cash into your pocket…it depends on how much down you paid and how fast the property has appreciated, and whether or not you want to sell by owner or hire an agent to do it.
If you really want to move, then do it. Just realize that putting your condo on the market and asking top dollar may not be the best way to go…do the math and see if there will be anything left over after closing costs and brokerage fees. I think a better solution would be for you to sell the condo on owner contract terms and ask 10% more than current value. Then find a low down loan for the home that you’d like to purchase. Your lender will want some documentation (like a lease/agreement)that your condo debt is being offset by the rental income…
In the end you’ll get quite a bit more for your condo, you’ll probably enjoy a bit of monthly cash flow from it,and you’ll get the home you really want.