Rent or Sell? Does 2% or 50% rule matter in all markets?
Our property does not fit into 50% or the 2% rules; but I am still in a dilemma of weather to rent it out or sell the home. Any wisdom in the matter is really appreciated.
Here are the details:
- Market: Seattle area
- Mortgage is at 62% LTV @ 3.25/30 years and in year two.
- Rent: 0.6% Purchase price
- If we sell it now, we would make about 30K on top of down payment amount after covering the mortgage, commissions, closing.
Our home is in a very good rental market and I expect minimal vacancy rate for several years. Its a newer home (Built in 2009-2010), so I do not expect big maintenance expenses for some years either. We are currently managing the property ourselves. Rent leaves us with about 400/month after covering mortgage, taxes, insurance and HOA. Should we continue renting it and consider the equity+appreciation in cash flow?
Does the 50% or 2% rule matter in high priced markets like Seattle/SFO?
Thanks,
Jerry