I need a bit of advice. We are in the Dallas area. Wife and I bought a little townhouse 2+ years ago in old east dallas and now need to upgrade to a house as kids are in the picture. I would like to keep the townhouse as it's been gaining value and we can easily rent it out. Our neighbors are renting their unit and we can probably get 1k above our monthly mortgage. We have it 2.85% rate locked in and only had to put down 5% no PMI. Now rates are ridiculous. We're not in a rush to buy, but I want to ask the experts here. The houses were looking at 2 years ago were around 1-1.2 mil near lovefield off the tollway in dallas. Now they are 1.5-1.8. I'm looking at the same neighborhood. Basically they tearing down a bunch of old homes and building new ones. I have noticed, they have all been on the market 6 months+. Most of them have cut their zillow pricing 80-150kish and still sitting on the market. What would you guys do and what do you expect?
1. Will we have issues getting a 2nd mortgage as I do not want to sell our townhouse? I would love to rent it out and keep gaining equity. In your expert opinions, is it best to wait as we are not in a rush?
2. I imagine no one is touching these homes with the jacked up price and current mortgage rates. My buddy build his new home a year ago in the same neighborhood 500k less than what these other homes are being listed at. Generally speaking, if the price has been cut 100k in the last 6 months and let say it is listed at 1.5 million, would an offer for 1.2-1.3 get laughed at?
3. I know I spoke with UTPhil a few years ago but they weren't doing physician loans at the time or something like that. What can I realistically expect as far as rates go in the next year and are companies still doing physician loans? My BiL was telling me to do a 7 year arm and refinance later but this stuff can go over my head.
Thanks for the feedback in advance. Just trying to educate myself before we do something stupid.