Should I sell or rent out home

Question

Currently own a home in Dunwoody/Doraville Georgia(on border of each but listed as Dunwoody on Google Maps). Bought with 5% down on conventional loan at 3.875 on Feb. I work in tech and have offer to move to NY making quite a lot more. Would be able to cover mortgage easily without renters and am single with no dependents in mid-20s.

In the 5 months I’ve owned house it’s appreciated another 7% as my neighbors with similar home in curl-de-sac have sold for a lot more, though things are slowing down now and could reverse. Debating on if I should sell or rent it out for small cash flow or even neutral if it’s necessary to make repairs. House is 20 years old with fairly new roof and HVAC.

I’m leaning on keeping it since my interest rate is low and appreciation plus tax deduction in the long run can have a large upside. Even more so it gives me experience in Property managing and if things get too annoying I could go to property manager or sell then.

Just wondering if I’m missing something or if you all would do something different.

Steven Foster Wilson · Answer

I do not know what the numbers are but from what you said, I would keep it. Especially if it can set you up with some cash flow and in the future maybe you could HELOC and get another place so you can cover your rent in NY. I would also look into setting up your core 4 https://www.biggerpockets.com/... to start to get systems in place.

William Ad · Answer

Thanks all! Looks like the consensus is to rent it out. I’ll start doing some research into the best way to do that.

Thanks again!

Karl Denton · Answer

I would rent the space for sure, you can furnish or find a long term tenant. Plenty of people to choose from in this market. You also have a great low interest locked in so I would absolutely try to keep the property and have it pay for itself.

Bill B. · Answer

Do you have family or any other reason to ever come back to Georgia?

If you sell you’ll probably be able to break even after closing costs.

Assuming you’ll have to rent in NY the debt probably won’t hurt you.

Ask a local PM how much rent they could confidently collect, how long to start collecting that, and what they’d charge to do that.

Nathan Gesner · Answer

Never sell unless:

1. the property is a stinker and losing money;

2. the sale will move you closer to your goals.

Figure out where you want to live, then determine how you will get there.

William Ad · Answer

Thanks for the info, I’ll look into furnishing. One issue is I have an HOA that doesn’t limit rentals but may plan to in the future and I don’t think short term rentals will go over well. Looking to find a long term renter as to not bother neighbors as well.

Jeff Schemmel · Answer

take a look at unfurnished vs. furnished rental demand, prices, and vacancy in your area.  I recommend utilizing rentometer for unfurnished, and Furnishedfinder or airdna for short-term, mid-term, or long-term furnished rentals.  If cash is no issue, It's probably worth your while to invest in some nice furnishings and connect with a local cleaning crew and turn that house into a sweet mid-term furnished rental you can rent out to traveling project managers, nurses, etc.  This assumes there's demand for it and that's what I like using AirDna to understand.

I suppose I should mention you should keep it and almost certainly it doesn't make sense to sell.

edit: I should make the obligitory "research your local rules and regs around short-term rental restrictions or licensing requirements before doing this".  They will usually state how long a lease must be.  just work around it if there is something.