To sell or rent: Advice Appreciated
Hello, everyone - My name is Mike. I was reading some of Brandon Turner's content on the site and realized this seems like a great site for landlords.
That said, I'm still not sure if I should go that direction. As I'll explain, it seems like the right call - and I told my wife last night that people smarter than us would probably think we're dumb for considering selling. Anyway, the story, in a nutshell:
We bought our current home ("217") - a semi-detached in a nice neighborhood - in 2009. Sale price was $175K, but we got a loan for $178 that helped with closing costs (we were young). The last two years went well for us and the mortgage is currently $85K.
In the meantime, we bought a bigger house (approved without the condition of selling 217) and settle in June ("29"). We are putting 20% down, so we'll have some nice equity to start.
The issue: 217's market is now ~$160. Also, everyone seems to want seller's assist. If we sell (and there is a lot of interest, including 2 offers on the table), we will net roughly $63K. So we're taking a decent-sized hit from 2009 when all is said and done.
So, here's the question: Take the loss and sell or rent it out? There seems to be interest in renting in the area, we could refinance our 217 mortgage and net ~400/mo. after insurances/taxes/payment. Our new house is 7 minutes away. Concerns are simply the hassle and the chance we can't find a renter (although it seems unlikely - what's your experience?). We don't need the proceeds from the sale to feel comfortable and would likely throw most of it at the new mortgage principal.
Anyway, happy to answer any follow ups and I really appreciate you reading. I only wish I found this site earlier and look forward to joining the community, whether it's now or down the road.