Own Duplex. Want to buy single family house..?

We own a upper/ lower duplex.. We were thinking of selling it but now because of market want to use it as invest property. But as the duplex is getting too small for us to live there, we would like to purchase a single family home.. How would we go about it?? Can we change the duplex to investment property or should we just purchase the 2nd home as a vacation home as its out of the cities a bit?? We would like the cheapest and easiest way to do this.. thanks for the help..ohh upper unit is rented already. And we lived in the lower level now.

Hmm.. we've owned it for 3 years now.. have 5.62 rate, mortgaged as a hud loan. We'll probably break even maybe a little more since ulities are high only during the winter months.

Just turn the duplex into a rental and buy the new home as a primary residence, that is the most cost effective way to to it. Since you already have landlord experience the lender will give you credit for 75% of the rental income on the duplex as additional income after the debt service on the duplex. That is a good thing because if you didn't have landlord experience you'd have to qualify for both payments without benefit of the rental income.

Feel free to email me if you have further questions.

This all depends on when you bought it, the value of the land the rate you have on the loan. Example, if you can rent the duplex out with positive cash flow or break even, while taking a second out on it to put down on your next house or to use for improvements. There are a lot of options you have, but it really depends on what you want to do and your risk.