To Rent or Sell Current Home
Hey BP Community - this is my first post/question, and I want to thank everyone in advance for any advice you might have to offer!
I currently live in a small/studio condo (in Brooklyn, NY), that I purchased about 1.5 years ago. My original intention had been to turn this into my first rental unit when I decided to move.
Well, here I am already looking to up-size (a studio apartment will soon no longer be big enough). While running the numbers (with help from the BP Rental Calculator) I am no longer confident this would be an effective rental unit for me. It appears, after my mortgage/HOA and additional holding cost assumptions (vacancy/CAPEX/repairs etc.), my expected rental income would not be enough to generate a positive cash flow (but rather potentially ~$200 in the red).
It is also worth mentioning that the value of this property has risen substantially in the short time I've owned it. It seems after closing costs etc, I would make a decent profit upon selling (based upon comps in my neighborhood).
Given the above, I assume it make more financial sense to sell this property as opposed to renting it (with the hope of eventual positive cash flow and/or increased property value later down the road)?
Additionally, are there any cost savings opportunities or efficiencies I should be aware of if I were to sell and purchase a home in "one step". For example, are there ways to save on realtor fees in this instance (perhaps by working with one realtor for both transactions)?
Thanks again in advance for any advice/thoughts!
Brian