I just got a new job making the most money that I have ever made in my lifetime (almost 70K) which is amazing. Especially after losing my job last year, getting on unemployment, getting pregnant and jumping through a few jobs since I had to adjust to my capabilities at each trimester.
I have my own business, but it only makes me $250/month right now and is very inconsistent. I have learned that I don't like waiting for other people to pay their bills so that I can make an income. I started the business back in 2023, but the expenses have always outweighed the income so it probably is more like a hobby now. Finding a renter for my condo would help increase income for this business, but I would have to find another home that I could qualify for at the same time keeping my condo.
I have $102,228 in unsecured debt (student loans and credit cards) and I owe $120K on the condo. I believe that I have $100K in equity on my condo that can be realized through a sale or through utilizing a HELOC. I haven't applied for the HELOC yet and believe that I need to work for a few months to qualify for it.
I will have lived in my condo for 2 years in July 2026 and learned that I can sell my home and avoid taxes on the profits once I have lived there for 2 years. The condo does have HOA dues of $145/month and an additional insurance assessment of $1,300/year.
Option A: Sell Condo and start over. Pay down payment on a house, mortgage, student loans and credit cards. (I may not be able to pay all of these off, but I can get as close as possible.) Hopefully only will be left with a mortgage on the new house.
Option B: Keep Condo. Get HELOC for down payment on next home. Rent out condo. Utilize HELOC to also help pay down debts faster. Use rent profit to pay mortgage and HELOC payments. Use my salary to pay down new home mortgage. Manage tenants.
Which option would you choose and why? Is there another option I'm not thinking about? Any other details necessary to make it easier to choose what to do?
Should I sell my condo to get rid of all debts OR try a different strategy to include getting a HELOC and renting it out?
byu/EVMama23 inpersonalfinance
Posted by EVMama23
2 Comments
I don’t understand the solution to the problem of to much debt being more debt? I guess if the interest rate of the unsecured debt is high maybe. If it was me I’d apply the “K.I.S.S.” principal, sell the condo assuming you’re already living somewhere else and knock out all your debt, take whatever is left and invest in index funds.
If you have that much equity it sounds like it makes sense to sell to get the equity out. Use a portion to secure a new condo and the rest to knock out as much of the credit card debt as possible and then tackle student loans. Option b will just saddle you with another monthly bill to pay off.