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Jason Evans
  • Real Estate Investor
  • Hillsborough, NC
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21
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Sell my first house or rent it out?

Jason Evans
  • Real Estate Investor
  • Hillsborough, NC
Posted Oct 16 2014, 15:41

I bought my first home (mobile home) 3 years ago with the intentions of fixing it up and selling it a few years later to make a profit.  I bought it foreclosed on for 53,000 (424 a month) and put 2000 down.  Over the years I put $15,000 in it and did all the updating and repairs myself.  Its fully updated now, hard wood floors, porcelain tiles, new windows, fresh paint, new front door, updated bathrooms, etc.  My intentions were to sell this house and use the capital to buy a buy and hold investment property and find another house to live in and repeat the process.

My realtor said I could sell it quick for 100,000 ( hoping for 115000).  I owe 48,488 and i figured after commissions and fees I would net somewhere around 44000.  Then pay some other debt off which is 15650 (600 a month 26 more months to pay off), which would leave me with 28,350 to invest with and find another home to live in.

My other option is to rent it out,  on rentometer ( not sure if reliable source) it said the average rent would be 1100 which i figure i would net around 550 a month, 6600 a year.  Which seems good compared to other houses in the market.

Im a newbie and I just can't seem to wrap my head around which would be the best choice.  If I rent it out all my profit goes to paying down debt for the next two years.  If I sell it I start fresh but have the fear not finding as good of a property with that monthly income. Any advise?

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