Rent vs Sell in this hot market
Hi. Hoping to get some insight from the group with a decision I need to make that is somewhat win-win. Scenario is as follows:
1) I received opportunity to buy and rehab my childhood home from my father. I need more space for me and my 3 sons. Cost for purchase plus rehab would be approximately 275k (including allowance for overages). In current market home would be worth approximately 375 K to 400K depending on improvements I make.
2) My current condo style townhome is in a hot market in MD. Based on recent sales, I could get approximately 55K to 60K in profit if I sell now. If I rent at current rates, I could net approximately $375 a month (would not include repairs but all regular monthly costs) if I dont utilize a property manager. My current home is in good condition but will require a water heater in the next year or two. Another factor to consider is the good schools in my current area I would have access to if I decided to move back later. We just had a new high school built last year and another one is not slated to built in our county for many years.
I am conflicted if I should sell while prices are at historic highs and use that money towards my new home or work towards passive income through investment property. I know there is no right or wrong here, but appreciate any thoughts you are willing to share.
Thanks,
Marcia