Rent or sell

[Rachel Jane]

First post, no idea what I’m doing, lol

My grandfather passed away and left me his condo, which is fully paid off (and located in a seniors residence) It’s worth approx $500,000 (CAD). Rent I could probably collect $2000 a month. Condo fees $800 a month. 

I live in my own primary residence and that is fully paid off. 
I am exploring options - sell his place, use is as a rental or take some equity out if it to purchase another property (I was thinking maybe a short term rental on the lake)? Real estate is not my of my knowledge base at all but I want to start working on building passive income now (I’m 44). 

I’d love to hear your take and what you would do. I also have $100,000 sitting around from him because I have no idea what to do with it 

help!

[Theresa Harris]

Sorry to hear about your grandfather.  I'd also look into property taxes and what is included with that $800 condo fee (that is really high though guessing it may include weekly cleaning).  Are there rules about renting it out?

Where are you located?  That will determine if you could sell it and use the money to buy a single family home or would need to take out a mortgage.  Short term rentals will get you more per night, but they are also a lot more work and can be seasonal.

If it was me, I'd probably sell it.  If you sold it for $500K (after expenses) and invested it in a savings account (or some in a RRSP or TFSA-up to your limit), even at 4%, you'd get $20K a year.

Also what province is it in?  BC and ON are very tenant friendly.