Update:
Thanks for all your responses.
Just bought a house with the extra space that I need and want. I close in 3 weeks! I put 20% down. The seller was motivated, needed out fast. They had trouble selling it because the walls and ceilings of the ENTIRE HOUSE are all painted LIME GREEN (which I will paint). It has tons of upgrades and the inspection I had done went well.
After some bargaining, I got a REALLY good deal on it. It is located in a growing area on the outskirts of Atlanta and will likely appreciate in value. It is also 10 minutes from my work so will save me a LOT of stress, time, and gas as I now drive almost 2 hours round trip for work each day. My interest rate is 5.875, 30 yr fixed. I did the calculations and I would be better off taking the extra cash for investing, rather than getting a 15 yr fixed. The interest rate is not that much different for a 15 yr fixed. I will invest the extra cash and make a higher return. Also the rate was not low enough on an interest only loan to justify it, even though that would have freed up more cash for investing. So I went with the 30 yr. My payment is about $816 a month, $1000 per month when you add the taxes and insurance.
I do not know how long I will stay in that house as I can't predict the future. But at present I am thinking I will stay a long time. At least 5 years. Maybe 20 years. Who knows.
I will be keeping my condo as rental property. The rent will be enough for me to break even after upkeep expenses. Plus I'll get the tax deduction. These condos are renting great but selling poorly. That is why I am renting it instead of selling.
If I enjoy renting my condo, then one day I might decide to rent my house and move again. This would not be for SEVERAL years however. I may not do that at all, it was just a thought, for the far off future once I've lived there several years.
When you calculate saved gas costs, I am not paying that much more for my house than I am for my condo. Maybe $100 more a month. Plus I will have a lot less stress, living closer to work. This will definatly help me to make more money, as I work in 100% commission sales. When I am tired from all the driving and frustrated due to traffic, I definatly don't make as much money selling.
So even though retirement is my ultimate goal, I am certain that this house purchase was a good idea.
My one bedroom condo does not leave me any room for entertaining during the holidays.
My new house has a guest room so I can welcome my out-of-town friends and not feel like there is no space for them.
My boss's husband is VERY successful at real estate investing. They finance by owner several properties.
I was thinking of getting into that, just with my condo, since I have enough income that I can carry two mortgages.
I am not sure if I want to do that or just rent. But they said lots of times pple pay a large (several thousand dollars) down payment, then live in the house a few months and can't pay the bills. So you get to keep the deposit money and they have to move out.
Another option would be lease to own.
I believe I'd make more money doing this than just renting the place.
Does anyone know much about this?
I definatly will get with my boss's husband. He REALLY knows his stuff and will tell me how to do this.
The only thing is, he said, you must be able to pick up the mortgage if your tenant can not. Which I can do. Also if they damage the place, in a owner finance situation, and they can't make the payments and move out, I would be stuck with the bill. It is a risk.