Sell current primary or refi and rent

[Geoff Pope]

Hello Everyone,

I am new to BP so bear with me if any of my questions appear obvious.
Backstory: My wife and I purchased our first home in Glendale, AZ back in 2023 with 3% down at a purchase price of $365k. Our monthly payment is $2580 at 6.6% interest.
We are planning to move out of state once we have lined up a few financial moves as we just recently purchased an investment property where we plan on moving to and will convert it to our primary residence when we move. 

My question is, does it make more sense to try and refi (despite not having 20% equity) and look to rent it? The house (despite some up and down) is still valued about $365k. Local rents for a 3B2B at 1200 square feet is right about $2500-$2900/month  

My long term goal is that we continue to grow our real estate portfolio in time to slowly gain more cash flow and move over to real estate investing full time. My feelings are that the house is just not in a market that makes a lot of sense to hang onto, and our money would be better used selling the house and reinvesting where we plan on moving. Would be very interested in anyone's thoughts or advise!! Thanks

[Melissa Justice]

@Geoff Pope,

Welcome to BP! I’m an agent based in the Valley and would be happy to connect to discuss your situation in more detail.

From what you share, both options have pros and cons:

Refinancing and renting: You could potentially refinance, even without 20% equity (though cash-out options may be limited), and rent it out at roughly break-even or slight positive cash flow. You’d gain long-term appreciation and keep a foothold in the Valley market.

Selling: If the market isn’t strong for rental cash flow, selling now frees up capital to invest in your new market where you plan to live and grow your portfolio.

Ultimately, the “right” choice depends on your cash flow goals, tolerance for managing a remote property, and the opportunities in your target market.

I’d be happy to connect privately to look at numbers and options that fit your goals - I've sent you a DM.