Sell or Keep House for SFH Rental

[Chris Hogan]

Hey folks!

I'm interested in opinions from other investors in the Seattle/Eastside area on my current situation. I listed my house for sale in the Snoqualmie, WA 2 months ago (essentially the worst timing) and while it has had some showings, there have been no offers while we have steadily decreased the price over $200k. This has led me to the point of wondering if I could instead turn the property into a SFH long-term rental instead. It's a 3bed 2.5 bath, roughly 2,400 sq ft and in great shape. I believe it was even being used as a rental for a few years prior to me purchasing it  and living here the last two years.

My main question is: Between the risk of not selling the house and having to sit and eat the cost of the mortgage for months (I've already moved elsewhere) or renting out the house and breaking even or going $100-$200 in the red, which would you choose? I'm sure from an investment standpoint neither option is amazing, but the silver lining on renting is the idea that maybe 5 years from now prices have gone back up and I can sell for more. Any thoughts or input are appreciated!

[Henry T.]

Sell. You don't want to be a landlord in WA state. If you don't have experience, you'd better have a reputable, experienced property manager that's up on the barrage of recent legislation.