Sell or Rent Our Home? What to do?? FL --> AR

Sell or Rent Our Home? What to do?? FL --> AR

Member since 2021 · 4 posts · 1 vote

Hello all. This is my first post. I am grateful for this community as I am in need of some advice. My husband and I own a home in Jupiter, FL (Palm Beach County). We purchased it with an FHA loan in 2012 for 172K. We just refinanced with a conventional loan for 188K over 30 years. Our mortgage payment is about 1400 a month with taxes and insurance. The house is probably worth about 400K or so at this point.

We are in the process of putting a new roof on. We also have a couple of larger projects looming such as a retention wall (we are on a canal with ocean access), a new driveway, and completion of a fence. A retention wall alone would be about 20K and it's needed as we are losing land due to erosion. 

We'd like to move to Bentonville, AR and house hack a duplex which we plan to acquire with an FHA loan. We are back and forth DAILY on whether or not we should sell this place or keep it and rent it out. I know Zestimate is not 100% but it says it could potentially rent for $2900/month. We are in a desirable area with great schools, close to the interstate and the turnpike, and are less than 2 miles to the beach.

I would be SO appreciative of any insight or advice anyone would have for us. Thank you all so much in advance. 

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Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes
4y

Have you been to Bentonville?  Its really nice, but not as nice as a beach community (in my opinion).  Maybe you move and rent the house for a year then sale?  Make sure you like Arkansas first?

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  • Rental Property Investor · West Palm Beach, FL · Member since 2019 · 155 posts · 57 votes
    4y

    Hi @Jennifer Pressley is your home located in an HOA? If so have you considered the implications of renting with dealing with the HOA's terms?

  • Member since 2021 · 4 posts · 1 vote
    4y

    No HOA

  • Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
    4y

    You’ve got a $228k gain that today is tax free. Same if you sell within 3 years of moving out. If you sell the The next day you’ll owe the federal government about $33k in federal taxes. Plus maybe $9k in depreciation recapture taxes plus about $14k in Arkansas state income tax. So you have to make $56k in profit in those 3 years to be even with where you’re at if you sell today. 

    You’ll PROBABLY get some appreciation, you’ll PROBABLY have some repairs and some vacancy. Weigh those against the chance of this property returning $19k/year in profit. 

    Oh yeah, bonus feature of moving to Arkansas, you’re Florida income will become taxable by Arkansas as well. :-)

  • Jon HuberPro Member
    Rental Property Investor · Boca Raton, FL · Member since 2014 · 1k+ posts · 713 votes
    4y

    @Jennifer Pressley. No question… rent it out and keep it. Think about the long term. You can rent it out and cover your expenses.

  • Rental Property Investor · Russellville, AR · Member since 2014 · 688 posts · 509 votes
    4y

    Have you been to Bentonville?  Its really nice, but not as nice as a beach community (in my opinion).  Maybe you move and rent the house for a year then sale?  Make sure you like Arkansas first?

  • Member since 2021 · 4 posts · 1 vote
    4y
  • Real Estate Broker · Fayetteville, AR · Member since 2017 · 375 posts · 240 votes
    4y

    Most of my investors always say that their only regret it that they sold. However, it always depends on your life goals, that then push toward you investment goals. Seems like you are wanting to build your investment portfolio by house-hacking. So, I am on the side of keeping the house and renting it out!

  • Member since 2021 · 4 posts · 1 vote
    4y
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