An Afford Anything reader recently emailed me about this dilemma:
He’s upside-down on his home. He owes more than the house is worth.
But he wants to take advantage of today’s low housing prices, which will let him move his daughter into the best school district in town. He can put 10 percent down on a new house in a fantastic school district.
He’d lose money if he sold his current home. There are only two ways he can sell it: either bring cash to the closing table (i.e. pay extra to get rid of it!) or process an excruciating short sale, which would destroy his credit.
Both of those choices are off the table. He wants to rent out his current home until the market recovers enough that he can sell it. But is this a good idea?
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