Sell or keep it for rental

[Jeremy Nance]

Have a house I have listed but only one offer that was real low. It’s paid for so if I sell I’ll pay off all my other debt. Which is $114k and it’s listed for $269k. I know I’ll end having to pay taxes if I sell. So should I keep it and rent it and borrow against it for the next house or follow through and sell it so I have actual cash?

[Aaron W.]

@Jeremy Nance Are you saying you have an offer for $114k for your property listed at $269k?

To answer your question, what are the expenses for your home if you were to rent it out? This should not only include mortgage payment, but insurance, taxes, repairs/maintenance, utilities (if included), landscaping, etc.

Subtract all the expenses from the potential rent you will receive. Do you come out on the positive or negative end?  If negative, then this property may not be a rental property. If positive, then it MAY be a rental property if the remaining cash flow is high enough to your liking. For example, if it cash flows $10/month, then is it worth keeping?  That is your choice. 

Good luck!