Feel stupid not selling.

[Marian Smith]

Just finishing up a rehab which was purchased as a long term rental. But this is the hottest real estate market I have ever seen. Texas, I feel stupid not selling...buy low sell high, etc. But I bought as an inflation hedge and the property rents will more than cover the 15 year note and expenses, so it also seems stupid to sell. Especially as it will probably be years before I can replace it with another fixerupper under current market expectations--i only buy good deals and for that I need a buyers market because I don't knock on doors, etc.

I don't think the house is worth near what it would bring except that at todays rents and todays interest rates it is cheaper to overpay with an FHA loan than to rent. I would guess this property would sell for 30% more than pre-bust prices. 30% over 5 years seems somewhat reasonable, but the increase in value seems to have all happened in less than 2 years.

This house has a bad across the street neighbor. Hoarder, garage sale seller, porch dweller type. Other neighbors houses look fair to good to great, mixed but mostly good. good schools.

opinions? Rents and prices will plummet when interest rates go up? building materials getting more expensive so replacement cost will go up propping up existing home prices? loans will get harder to get so prices down but rents up?