The 40% appreciation was being conservative and is since 2001. I own it since 99 so its more like 60%. Its mine and I have tons of equity. My carrying costs are below 20% of my monthly income and I have the assets to pay it off. If I factor in the income I get on my rental the carrying costs are about the same as yours. I could sell that rental property and pay off the HELOC but it doesnt make sense to do so. Everything I post is the worst case scenario.
Your $75 to 80K profit is a prayer and best case scenario if everything goes right for. When in your life has everything gone right for you? I never make plans on assumptions like that. I should start calling Pollyanna.
What happens if the market gets worse?
What happens if the needed repairs are more costly than you think?
What happens if your mid-century home needs new unexpected repairs?
What happens if you have to pay a brokerage fee?
What happens if your neighbor buys it but expects to have the cost of those brokerage fees deducted from the sales price as nearly all buyer would?
And almost certainly, what happens if the house isnt worth what you think it is now?
