Rent or Sell House in Austin?
Hey all,
Long story short, I'm interested to hear opinions from experienced folks on whether I should sell or rent my Austin, TX property.
I bought my house (3bd, 2b, 1800sq ft, built-in 2018) in 2020 for $315k (VA loan, no money down) and today, it is appraised at $505k. So I've got ~$150-200k in equity. It's in the South-East part of town, south of the river, and ~10-15min from downtown Austin, 78744. I've spoken to realtors and property management companies, and they've informed me my house could rent at $2300 (mortgage is now $2306 due to a $300/month YOY property tax increase) or sell between $485k - $515k. Property management and their fees run me $4484/year. After these fees and mortgage and adding the rental income, I lose (-)$380/month or (-)$4556/year. I make good money working in tech, so could eat these costs, but I'm unsure if this is the best idea to rent it. It's speculation to assume my house will be worth millions one day because of Austin, but it's plausible to assume it will continue to appreciate nicely. However, property taxes also increased 70% this year, and continuing increases will be a further loss.
If you're interested in my rationale behind this, feel free to keep reading.
My girlfriend and I are planning to move into an apartment in downtown Austin. Honestly, we hate being homeowners, feel stuck, we're surrounded by families in the suburbs (we don't want kids), and also are not crazy about Austin. However, it's a good place to work in tech, and until she can work remotely as well (~1-2 years to go) we'll have to stay here. Downtown is like our last-ditch effort to give Austin a chance. I'd consider buying a condo downtown, but most are going to be ~$700k + for a nicer two-bedroom. I know most will say renting is a waste of money and rents will only increase, but at this point in our lives (early 30s) we want flexibility and experiences. The downtown apartment provides that plus all the amenities (gym, pool, etc.) and if we end up continuing to hate Austin, it'll be easier to move out of state vs trying to sell a house.