Is it financially feasible to rent my house out? (Ft. Lauderdale)
I posted my introduction on another thread (http://www.biggerpockets.com/forums/55/topics/227341-new-from-south-florida-ft-lauderdale-b4-in-nj-union-county?page=1#p1506081) and thanks for all who replied. My employer is forcing me to relocate up north from my beautiful house in Davie, FL and I'd like to explore if financially, I could rent it out so I can keep it.
It is a 4/3, 1 floor house with screened in pool, jacuzzi (my profile picture), and solar power heater. Larger size lot than others in the neighborhood, great school area, not far from higher education places, and with lemon, orange, ackee, and mango trees. Already had granite counters in the kitchen, hardwood floor on the master bedroom and hallways, and this really nice floor (marble, stone?) in the kitchen. That's probably why previous owners short saled, and I bought in mid 2014. Added new appliances, adding laminate flooring to all rooms not previously mentioned, celing fans in all rooms, had the house repainted, and fixed things that needed fixing (pool, outdoor sprinkler). The house is fantastic; I asked my wife what she would change, and all she could say was paint some postings on the screened in pool, and fix some pebbles (and some nicks in the paint). We've been to open houses in our neighorhood and they don't look at nice as our house.
Zillow is suggesting houses in my neighorhood are renting for $2800 - $3200, though I have no idea if the bed/bath and amenities are comparable. I pay $2120 on PITI, though taxes will go up due to the reassessment from us buying it. Not sure if insurance cost can go down if I turn it into a rental. I pay about $90/month in lawn care, $90/month in HOA, $100/month for pool maintenance, and $60/month for home warranty on appliances. Since I will move far away, will probably need a property manager. Looking to start renting in March / April 2016.
I have a 5/1 ARM at 3%, and if I sold right now, I'd probably make $30k over what I bought/put into the house, and $40k profit of mortgage + down payment + what I put into it, given that employer would pay all commissions and fees. But I'd cry too. Hence why Iam considering renting it out:
1) Is renting it out financially do-able?
2) Is renting it out March / April 2016 a good time, or should I try earlier; my employer will glady move sooner
3) What else should I consider?