In the process of moving in with my long term girlfriend. Looking for advice on whether I should sale or rent my current house. Here are some of the specifics, any advice would be appreciated.
House was bought in 2010 for 130,000.
I currently owe a little over 93,000 on a 30 year mortgage.
I live in a very hot housing market and could sale very easily and conservatively for 170,000 (probably more)with no repairs or prep work.
I could also rent very easily for conservatively 1,300 a month again with little to no prep work or repairs.
I am really looking for advice on what makes more sense financially. Thanks.
I may sound cavalier but the following things I am about to say are all for your benefit.
I would keep that house and rent it out. You say its a hot market, so its only going to get hotter. Ride the wave of appreciation. Who knows, it may even reach up to 200K within 2-3 years.
Another reason is, I know you and your girlfriend have been together for a long time and I wish you and her the very best. However, people fall in and out of love all the time. What is roses and sunshine one minute, can become wormy turd the next. So protect your heart and sanity by having something to go back to in case you and her don't work out.
Besides, it would be nice to have extra income coming per month and an end of the year tax write offs. Win, Win I say.
Would also check with tax pro, profits on sale of home as I understand it would be tax free now as owner/occupied, longer term rental those benefits on cap gains would go away, although other benefits as investor may apply based on income.
@ Jay Seals
I would keep it and turn it into an investment property. Depends on your local market to either rent it or just keep and use it as collateral for credit line.
Own an extra piece of property is always a good thing to do. (at least in my opinion)
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