Rent or Sell

[Eric Cozby]

Hello BP Community,

I currently own my primary home in Cape Coral and I am considering either selling or renting the property.   I bought the house before it was built, it was finished and closed in March 2022, and I have lived here since then.  It has appreciated considerably from the purchase price.

Monthly rent is estimated to be around $2000 per month, and after running the numbers through the BP Rental calculator, this will give me approx. $200 per month cash flow.  However, the city will be expanding utilities into this area in the near future, and will be assessing each property approx $35K to be paid over 30 years at 6% interest

Or I can sell it.  Purchased at $202K, current market value is roughly $300K.

Thoughts?   I appreciate the input.

[Nathan Gesner]

Quote from @Eric Cozby:

It cash flows $200 a month, or $2,400 a year. That shoudl easily cover your utility assessment.

Keep in mind rents will continue to rise each year. In ten years, that same house may be renting for $3,500 and you'll cash flow almost $20,000 a year. In 30 years it will be paid off, rents will be $8,000 a month, and you'll be cash flowing $80,000+ a year.

I recommend holding on to all real estate. The only time you should sell is if the property is a loser that you can't afford to keep, or if you are selling it to invest the money in something that will perform better.