Do I sell or rent out my first home.
Im 24 and looking to change my future. Im going to be moving but i cant figure out if i should sell my home (which is my first home) or rent it out. After i lose my homestead to rent it out the morgage will be about 1815.44 a month including taxes/escrow, intrest, payment.
I purchased this home at 198,500.00 it is now valued at 232,000 minimum and i owe 186,668.73 remaining on the home.
In short is it best to sell this 2 year old home thats in a developing neighborhood or should I create my first rental with this home?
Most Popular Reply
Alex, first welcome and good on you for looking to build financial freedom!
The answer to your question really depends on several factors. First, what are the rents in the area? Will this rent be enough to cover mortgage, taxes, insurance, capital expenditures, vacancy, saving, and management(if you don’t plan on self managing)? Second, how will this affect your ability to purchase another home? Will your debt to income be too high to purchase? If so, maybe look into buying a small multi family and house hacking (renting out the other units while living in one).
Hope this helps!