Rents in a Rural Market

[Ashley LaVigne]

My partner and I just bought our first multifamily in Grand Rapids, MI. We plan to buy more in the future and build our real estate business there. That said, I have a house that I bought and remodeled a few years back in central Michigan. There's not a lot of equity. Maybe $20,000 but it's only an $85,000 house in a rural market, about 2 hrs away from the new place and our future growth goals. How do I decide to rent it out vs sell it for another down payment? What are the most important items to compare? How would you weigh out the decision? Thanks!

[Bill B.]

It sounds like there’s no real possibility of appreciation if it hasn’t climbed at least 50% in the last 3-4 years. Sell now while the gain is tax free and move on.