Should I sell or rent out my current primary large luxury home?
Looking for feedback on here on whether to sell my current primary house or turn it into a rental. I have recently just renovated the kitchen with high end appliances and high end upgrades. I have also put in brand new carpet on stairs and all of the upstairs.
Here are the numbers from what I bought it for and if I were to sell and what it would get for rent:
Sell Scenario:
Purchased for $830K in June 2017
Put $60k into it, to include:
-2 New AC units
-2 New Furnaces
-Completely new kitchen/high end appliances/countertops
-New carpet throughout upstairs
-Light guest bathroom remodel(new tile floors/countertop/Painted cabinets)
Estimated sales price: $950-$975K
Estimated closing costs if sold for $965K: 2.5% commission to buyers agent/closing costs=$35k
Outcome If sold for $965k minus closing costs/commissions(only have to pay buyers commission) I would be left with a $40K profit from what I purchased it for and what I put into the house. I also put a large down payment on this house and would be left with around $338K in cash after loan payoff.
Rent Scenario:
-Estimated monthly rent:$4,500-$4,900
-Total mortgage/landscaper/pool man=$4,100
-Potential to cash flow between $400-$800 a month
-Principle monthly pay down of mortgage is $980 a month
Also since this house was built in 1989 a lot of the big ticket items are coming to the end of the lifespan, such as:
-New Roof Estimated cost: $25-$30K
-Pool/Hot tub Resurfacing/new tiles: Estimated cost of $25K
-New Fence: $7K
-New Windows: $25K
Total Estimated upcoming expenses in the next 5 years=$85K
With all of that being said looking for input on whether to hold or just sell and move on.
Here are some pictures of how it looks now
