@Aria Aref Adib I wanted to also mention that you're missing ongoing repairs, vacancy, capex, etc. in your cash flow numbers. If the mortgage is projected to be in the $1,400-$1,500 range (give or take), you'll be losing money on the investment. Based on my holdings in the area, I usually spend at least a few thousand a year in fixing things up (I usually get hit with at least 40% of rent for all non debt costs). Good luck!
Sell the property.
Why: you need a true cost build-out that includes Capex, increased property tax, and increased insurance.
Capex: you will need to make repairs to the home.
Property tax: if you are not the owner occupant then taxes sky rocket. This is different for each local market, but you need to figure this out.
Insurance: your stated expense is owner occupant. You need the proper insurance.
Also, and most importantly: if you sell now you don't get taxed on capital gains as it was your primary residence. Take the tax free gain and build out an investment plan on how to deploy that capital properly!
Do you know how to finance your next home? The debt on your current home will count negatively when getting a loan approval for your next property. Yes, once you can show rental income, that will be shown as income, but it's not a 1 for 1. Know your debt leverage and how you can finance going forward.
Thank you all for the insight. I appreciate it.
As other suggested, figure out how much it costs you to hold the house (taxes, repairs, etc) and add in flights from TX if you have to screen tenants. Even if you are getting $1900 a month for rent, it may not be worth it. Could you take the money from that house and buy a rental property closer to where you will be moving?
Buying a house to live in is different than buying one to rent for many reasons. A person buying a home will appreciate the new siding and windows, someone renting won't.
Wow thank you @Tim Swierczek ! @Aria Aref Adib lots of great answers here from many experienced investors. @David Barnett is spot on about including repairs, CapEx and vacancy. Easy to leave out but brutal when those costs come due. I also really like @Armin Nazarinia idea about investing in Texas. I know nothing about that market but it might be worthwhile for you to look into if you could leverage the proceeds of your MN sale into better cash flow in TX.
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