Sell or Hold?
Hey guys,
I just recently discovered biggerpocktes and I am very excited to start investing in real estate. I think I will want to be a buy and hold guy with an interest in multifamily properties. I bought my first property in 2011 at age 21 and got a great deal. I am now having to re-locate with my company and I was hoping to get some insight or advice if I should sell my house or rent it out. I am nervous about not being in the area for my first rental and was wondering if it would be better to sell and use the profits to re-invest. I am a newbie at all this and I am just now starting to educate myself on the real estate world so I would greatly appreciate any advice. Please bear with me if I am not including enough info. Thanks to all in advance!
This house is located in Douglas County about 20 miles south of Denver and housing prices are sky rocketing here with very low inventory.
Hold Option:
Could rent for about $1,750/mo.
Mrtg- $1,065 ( I think the tax is included in it) (pmi of $149 in this too)
HOA- $103.70
Property Mngmt- $140
Total expenses- $1,308.70
Cash Flow- $441.3
Sell Option:
Loan amount: $143,080.43
Potential sale price: $240,000
Expense to close I estimate 5%?: $12,000
Profit to re-invest: $84,919.57