To rent or not to rent?

7 Replies

Good morning,

In the midst of a potential move and I am considering holding onto my home in Roseville, Ca (3 bed 2

bath right by a good elementary school) and renting it out. I’m going through analysis paralysis on the decision and would appreciate any feedback on the key drivers for this type of decision. To me, it seems like a natural first step getting into real estate investing. But I don’t want to miss something I should’ve thought about ahead of time.

Have a great day,


@Mark Allen I'd probably hold onto it and rent it out especially if it has appreciated at all because you'll benefit from prop 13 in CA, it may not be the optimal investment, but it is a great way to get started and take advantage of the opportunity right in front of you.

@Mark Allen if it’s me I’m looking at the following, and yes I’m looking at same for our home

1. Market value for home

2. Equity in home and do I have quite a bit of capital to pull out with a cash out refinance for my next rental.

3. Market rents

4. Rentability in my area

5. Where’s my next move to (house hack, downsizing, etc) and do I have the money for DP for that

My opinion, that’s my starting point when I’ll be making my decision and trying to convince the wife lol

@Mark Allen calculate the return on your equity and compare it to what return you think you could conservatively get elsewhere after accounting for paying taxes and fees on the sale

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