Please help!

Sell?

so selling is our only option ya think? we were hoping to keep them as rentals have some concrete investments for later days. We have both currently rented, guess we could see if our renters qualify to buy. We just want to free up enough credit to be able to buy a house in our current city. Thanks a bunch!

I second Greensdale: SELL.

You have to at least meet with a real estate agent to see what the current market price of your home is and if it will satisfy both mortgage's. I agree with both greensdale and NYCMatt, you have to sell. It will obviously help you finance your new home and relieve you of the stress of this situation.

In a way selling works, because my other plan was to pay one of the mortgages off but that would leave me little savings to use towards a new mortgage. This way I could just put that money into savings and have a nice lump sum to work with after the others sell. Thank you!

I think you need to talk to a good mortgage broker before deciding what direction you want to choose. I'm assuming the property you now own has/have no restrictions on renting.

If FHA mortgages are like FNMA ones, your mortgage converts without penalty from primary to investment, and you can eventually have a bunch of them simultaneously.

If you've been declaring your income and expenses on your tax returns, math policies are quite generous (again, for Fannie; not sure about FHA) regarding adding back in depreciation, etc., to your total income.

So if your rental is going smoothly and you're not worried about renting it out from afar, you might be able to get a new FHA/FNMA mortgage on a new property where you now live, plus refinance (if that even makes sense) with a FNMA investment mortgage on your old place(s).

Alan, you think the OP should buy more real estate?

OP has no complaint about being a long-distant landlord, and is looking for a way to buy wherever she lives now.

So yes, given what was presented.

Here's what I decided to do. If I suffer as a renter for 10 months I'll be very happy at the end of my rainbow. I'm keeping the rental properties. My lease on my current rental is up in December, at which time we'll see if we can go conventional and buy our additional property. With a full year of continuous renting in my 2 rental properties per my mortgage broker they should allow us an additional loan. So I have 10 months to pad my savings for a down payment/closing costs and pay down my rentals a little so we'll be in tip top shape. The mortgages on both are far below what I charge in rent even with the high interest rates and I've been paying additional principal so the payment is continuously shifting in my favor and the appraised values of both have increased by 20% and 14%. Thank you all but I have to say alanhart the most :0)