Should I Sell Or Rent My Current Home?

Question

Looking for insight on selling or renting my current residence. My wife and I have been wanting to start investing in rental property for awhile now but really need to move out of our current home and into one closer to our family (only about a half hour away). I have around 65k or so in equity in my current home. I'm thinking of doing a cash out refi for my down payment on my new home and turning my current residence into a rental. I've done the numbers and it seems like after all expenses it should cash flow at least $200.00 per month on the low end. Is this a smart move or should we just sell and get out of it?

Jerad Miller · Answer

Hey Brenden Mitchum,

Thanks for the support. House hacking in the area we are moving to wont work. However in the next couple years I should be able to easily purchase another duplex or larger multi family. I'm a self employed business owner currently. Things have been going well even with the pandemic which is great. I think this is the best option as my current residence continues to appreciate along with the surrounding area.

Brenden Mitchum · Answer

Hey @Jerad Miller

So it sounds like you have a fairly simple way of doing exactly what you want: Start investing in rental properties. If the property will cash flow after refi and rent, then why not just go with this? It's much simpler than cashing out and searching for a rental property. Plus, you'll also have some cash from the refi to put towards your next property. Maybe a house hack closer to your family?

Hope this helps a bit and please feel free to reach out to me anytime if you have other questions or just want to chat!