Is my house worth renting? Or should I sell?
I have a 1940 single family house that I’ve been using as a short term rental.
I have about $140k in equity. I’m stuck about whether I should keep it as a long term rental and do a cash out refi to access the equity in order to get another property (preferably a multi family) or if it’s better to just sell it.
The mortgage/taxes/insurance per mo = $1225
If I hold 5% each for vacancy, repair and capX plus 10% for PM, then I’m up to around $1534 per mo.
Conservatively I can rent it for $1600+
I’m ok with managing it myself for now but want to account for the PM cost because I don’t want to have to do forever.
If I do a cash out refinance then my mortgage cost goes up and I’m for sure not cash flowing.
I would be around $260,000 on the new loan.
Do you think it would be better to just sell it?