Updated about 6 years ago on . Most recent reply
Should I Sell or Rent my starter home?
Hello, I bought a house about 3 years ago. Purchased it for $172,500, and I owe $155,000. It's now worth around 230-240k. My mortgage payment is $1050. I should be able to rent it out for $1500-1600 a month (maybe more). If I sell, I stand to make 50-65k after realtor commissions, etc.
I'm in the process of buying my dream home, and I'll be strapped for cash if I hold on to my current house. I can dip into a HELOC I have on my current home to help keep me afloat, but that will cut into my monthly cash flow if I rent it out.
My initial plan was to use my first home as an investment property, then cash out in a few years to buy more. Now I'm having second thoughts due to the higher debt obligations i would have by renting it out.
As an aspiring investor, what would you do in my shoes? Looking for some different perspectives. Thank you!!