New investor seeking advice sell or rent

[Kareen Job]

I am  fairly new to real estate bought a town house in San Diego last year as a primary home. Interest rates around 6% but looking to move for work. I am deciding if to 

1. Rent the place and have a delta of -$2k per month I carry each month. This is quite expensive but hoping to refinance in perhaps a year . Owe about $900k on the loan. Rent would be perhaps $5k , however San Diego rentals have come down this past year 

2. Sell the place although it’s only been a year, hoping to at least break even. 

My worries are the interest rates will remain elevated so securing another 6% interest rate on a property might be tough to do anytime soon.

would love some advice, thanks! 

[Dan H.]

San Diego is my market.  If you purchased that last year, you are going to be negative more than the $2k/month you estimate when accounting for all expenditures using the numbers you provided.  My rough estimate is $3k negative.

It happens San Diego YOY price increase of 9% should be enough to barely cover selling costs.  This implies you should be able to exit about even (small profit or loss).. https://www.corelogic.com/intelligence/us-home-price-insight...

if your hold was longer so there was significant prop 13 discount I may recommend holding but not the case here.  In addition a home bought for your use is seldom the best invest RE purchase.  Add residential RE is not passive even with the use of a PM. 

Do you have the necessary down to purchase where you’re moving without selling?  Even if you do I would sell this unit.

The negative $3k will decline with time and eventually go positive.   It will appreciate over the long term.  But there are better investment options.

good luck