Keep renting, or sell?

Flipper/Rehabber · eastern, WA · Member since 2017 · 35 posts · 19 votes

I’m having a hard time deciding whether I should keep renting a SFH I have, or keep renting it out. I have owned it for three years (bought it at a VERY good price) and have over $100k in equity. The current (3 year)tenant is moving out Oct. 1st, and while I cash flow $400/month on it, I’m thinking I may want to sell it and use that $100k to buy a couple of duplexes instead. The house has 17 years left on the mortgage (FYI). What would you do?

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Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 647 votes
8y
@Account Closed I'm not sure of the prices in your market, but might not be a bad idea to keep renting it but take out a HELOC on it and do the BRRRR strategy to pick up some more rentals.
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Aaron K.
Specialist · Riverside, CA · Member since 2015 · 6k+ posts · 3k+ votes
8y
It depends on where you are, you could refinance and get more cash flow, you could hold and have it paid off sooner. If looking at duplexes I'd do the math and see what the cash flow would be because you probably won't see the same appreciation again like you did with your SFH
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Account Closed
OP
Flipper/Rehabber · eastern, WA · Member since 2017 · 35 posts · 19 votes
8y
Jeremy Taggart I have thought about that, but HELOC rates are crazy high right now (like 7-8%). But Refi’s aren’t bad. Maybe I’ll cash out refi... id lose a couple hundred in cash flow each month, but I wouldn’t be paying $200-300 per month on an interest only HELOC... hmmm
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Thomas S.
Member since 2016 · 13k+ posts · 12k+ votes
8y
Refinance, as long as you still cash flow a descent amount after debt repayment and basing expense's on 50% it may be worth keeping.
Personally I would not carry the higher risks of renting a SFH, especially now, and I would be selling to invest in multi units...each to their own.
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