Updated over 5 years ago on . Most recent reply
Sell while high or keep for cash flow.
Hello everyone of the Bigger Pockets community. I wanted to pick your brains as I am a beginner to REI'ing. I currently own my primary home and have house hacked and am generating about $1900 a month from rent. Which is nothing wrong with that, its just as I was taking walks around the neighborhood I noticed other houses are selling around my block for less than compared to what I own and selling for a significant amount of $$$! Now with that said, do you think it is wise for me to sell my home and take about $300k, or should I keep because it is shelter for my family and it generates $1900 a month. I have considered taking $300k and buying another home else where but then again... where am I going to find another place for a reasonable price here in Southern California. Perhaps move out of state and take the difference and invest? But would much rather stay in Socal. I do have savings to start investing but the extra $300k will give me a massive head start. What are your thoughts? Please let me know! Thanks in advance as I appreciate your time!
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#3 Creative Real Estate Financing Contributor
@Danny Le If you are happy where you are and don't want to move out of the area, then keep the house. You are generating $1900 a month in rent ($22.8K/yr) and they are probably allowing you to live there for almost free. Think 10 years down the road, you will have $228K PLUS you'd still have that equity in the home...yes the home may be worth more by then and rents will also increase, but you get the idea. Once you get out of an expensive market and move to a less expensive area, it will be hard to get back into that market.
Could you buy another place in an area you want to live (and work) and still generate that amount of money?