Rent primary residence or sell

[Bobby E.]

I dabbled in real estate investing early in life then a divorce happened and ended it. Now i'm back to getting into it at age of 53. 

My house of 20 years is ether going on the market for sell or deed to my NEW rental business. I think selling would be my best option. I would like to hear from others with experience please. house is located outside of Lynchburg, VA in a high demand zip code. Inventory is still low. most homes on market are low 200's or above 400's . not many 4bd , 3ba homes for $325k range.

house appraised for $315,000

after some paint and minor fixes will list for $325,000 

balance on loan is $126,000 @ 3.375% interest

sell for $325k,  pay $16k in commission left with $309k

pay off mortgage $126k and equity loan off $66k and have $117k left to invest. 

Property Management co. says I can get $1,800/month rent for no problem. 

I pulled $66k out to consolidate $26k in unsecured debt and to put down payment on a Tri plex in next county over with an off market deal.  $185k - will get $2100 in rent.  ($45k down payment)

our market is still pretty great and lots of cash buyers so agent thinks i'll get 325k within a week. 

I have 3 other off market opportunity's in addition to the triplex that i'm suppose to have first dibs.  the first one at start of 2023 will be a duplex at $145k and will bring in $1450/month in rent. ($37k down payment)

so should i rent my house out? or go ahead and sell it and use cash for the triplex and duplex ($82k down for both) and have  $35k left to work toward getting the quadplex in 2024 when it's available.

thanks in Advance  

[Stephanie P.]

Quote from @Bobby E.:

Quote from @Stephanie P.:

@Bobby E.

It's all math.  You've done the bulk of it.  What does the math tell you?

Also, never try to time the market, but most people feel we are getting ready for a correction so if you need the cash to make your new business fly and that cash will make you money, I think the math tells you to sell.

Thanks Stephanie. with my low mortgage rate and the potential rent income the cash flow would be nice and appreciation will continue to grow in the area, however if I add another calculation that others have mentions and treat it like I was purchasing my current home for a rental property then the 1% rule is way off. I would have to rent it for $3,250.  

Then with a rate of 3.375 and a balance of 126K, I think I'd get the largest HELOC and make the house work for me that way. You're young enough to see the market turn around after a correction and still realize profit from a sale 15 years from now. Also, I wouldn't worry about the 1% rule. Lots of people are profiting from rentals with properties that wouldn't hit that mark.