I would lean towards keeping the property in Chula Vista if it makes sense and is in line with your other investing goals. There is still plenty of room for equity growth and the area continues to expand. As a parent myself I understand the draw to Temecula/Murrieta as they have highly rated schools. Hopefully your jobs will transfer as the commute from up there down to SD is daunting. There are still some areas left in SD which have highly rated school districts (8+) and remain affordable, relatively speaking. Consider looking into those neighborhoods before leaving SD county.
What a position for you and your family to be in! I was born & raised in Chula Vista so I know the area well. When my brother sold his comparable house in Rancho Del Rey a few years ago for $650k, I was amazed. The fact that the area has appreciated to $800k+ is incredible!
Other investors on this forum can break down the X's & O's much better than I ever could. For me it's a matter of PEACE. What decision will create the most peace for you and your family? A $500k-ish payday without capital gains? Or becoming a first time landlord and starting to build on your portfolio? If it's the latter, be prepared for the ups & downs as a RE investor, and make sure you stay focus on the BIG picture! My wife and i have gone through 2 super stressful evictions, and the only thing we would change is our screening process! We started our REI journey in 2004, when we decided to keep our SFH in Phoenix as a rental, and that decision inadvertently started our RE investment journey. To date we currently have 6 doors and just 1031'd our original Phoenix SFH into a highly successful short term rental in Idyllwild, CA (#idyllwildtreehaus). Side Note: If you keep your home you may want to consider looking into doing a STR. (Potentially better income, better control, and gives you the flexibility over your home, and it fun!)
My wife (44) is a hairstylist and I’m a W-2 employee (45) and we are crunching the numbers to see how we gain financial Independence in the next 10 years. This conversation would not have been an option if we decided not to keep our first home
In my eyes it’s a win-win for your family! Best of luck on your decision and we look forward to hearing your decision and your progress as you continue to move forward!
Sell and leave California. Use the money to buy a house for cash in an affordable market. At the very least you will no longer have a mortgage.
DONT SELL! the land value alone will go for what you owe, and their not making any more of that. I would rent out cash out refi if possible or heloc leverage it if you need to get cash for your next property but I would not sell a coastal california property. Let it pay it self off. I have a SFR in orange county and not near coast but good area and could cash out $250k but I too am not selling instead leveraging it. We are young and have a long way to go, we have the privilege of holding on.
Just an update on my original post- Decided to sell the CA property. I was expecting around $835k, and ended up closing escrow this week for $916k. After all commissions and fees- left with $543k profit. Super happy with the outcome.
Now, researching which areas to invest. New Braunfels, TX is a possibility for MF properties (although I would love to find a deal on one in Southern CA)- and considering Big Bear for a STR that my family will also use occasionally throughout the year. Step by step, but looking forward to this.
Thank you for all your help!
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