We are moving to San Antonio and trying to decide if we should rent out our Round Rock house. It is a 4200 sqft house on .8 acres with a pool, great school district. We really want to hold onto it and rent it out (I heard on the podcasts that people wish they had held onto every house they ever owned) but worry about renting a house this large and the liability we would take on with the pool.
Is the current hotness of the Austin market and growth in Cedar Park pouring over into the Round Rock market? We worry about looking back 10 years from now and kicking ourselves for selling because the market continued to heat up (or kicking ourselves for not selling because the market cooled).
I realize that last paragraph involves a lot of speculation but any insights you guys have would be greatly appreciated!
Can you provide more information about the home? Current value and what it could rent for?
I would lean towards keeping as a rental if the numbers work. It could be a great asset in growing/maintaining your personal wealth. I think it would be worth a call to a local PM company to evaluate it for you if you don't plan on managing yourself. I am sure some other members from your area could make recommendations.
I would lean towards keeping it as well, esp as you will be close by. If the numbers works and you find a good renter of course. Do your homework on that so you can sleep well at night :).
If you need a good contact for RE in the Alamo City, I can suggest one. Good luck, I love this town :)
The liability of renting with a pool is huge. Few landlords know or abide by the state rules regarding pools and all it takes is one drowning to lose everything and spend years in court. I would recommend you give this a great deal of thought. If there were no pool, I would say consider it. With a pool, I would give it a thumbs down.
SELL IT! Although the home is large and is quite lovely as described - all reasons that it will make a terrible rental. Large homes are impossible to cash flow as the rental market in Round Rock doesn't go to a price high enough to produce any sort of NOI. Then there is the pool. Another enormous red flag for a rental. Liability, maintenance, expense, water restrictions - this would be a black hole financially if you decide to rent it.
Take the equity out of it and buy small single family or, better yet, multi-family properties that will truly cash flow in San Antonio/New Braunfels/San Marcos. The REI market there is so much stronger than ATX metro.
The value is between $575,000-600,000. We have a 15yr mortgage so to cash flow (if it ever could) we would have to refinance, which will likely raise our interest rate and make the probability of it cash flowing less likely.
Thank you for you input! It hurts me to sell it, but it does makes more sense to sell and, like suggested, invest in something that will perform.
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