I currently own 2 homes. We built a new house last year and moved into it in December, 2016.
We did not sell our original home and rented (for cost) it to a friend that was down on her luck.
She is moving out and I cannot decide if I want to sell to get the cash out of it or rent it.
I currently owe approx $9,000 and my monthly payment is only $700.00/month ($2400/year in insurance, $1200/year in taxes & $200/year in HOA). Houses similar to mine are renting for $1500 to $1600 and are renting as soon as they become available. I could sell it for approx $210,000.
I do have a $130,000 line of credit on the house and have access to all of it. My wife and I have strong credit scores.
My long term goal is to buy other rental properties for future mail box money.
Should I keep this house or sell it?
I would say keep it and use the line of credit towards down payments on other properties. It looks like the monthly cash flow could be strong and if there is strong demand for similar house why not use that for mail box money while you build up your portfolio?
if you plan to buy another rental in the future, why bother selling this one? Just make this one a rental to cover the mortgage and you will have + cash flow.
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