Updated almost 7 years ago on . Most recent reply
First rental property
I am a first time poster, but have checked out the site literally for years! I just have a question and figured it would be a good first time question.
I currently live in a small town in Montana. I have been here for 12 years. Two years ago, I purchased a 4b 2 1/2ba town house in my town, which is a college town. I have never been totally happy here but I am stuck here due to parenting issues so I decided to live to the fullest and try to progress while I am here.
I am now at a crossroad where I am ready to leave here for greener pastures. I have a dream of being a real estate investor and want to leave here and acquire some properties. My question is this should I sale my home or turn it into a rental and count it as my first property? I will have about 15k in an account to service the property if needed and am trying to set up a team as I would like to self manage because my mortgage wouldn't leave much cash flow after rent is paid so I would like to try to keep some money for myself. I dont have any other experience managing properties other then the few years of research that I have done. Some advice from experienced investors would be appreciated to get me headed in the right direction. Thanks!
Most Popular Reply
#3 Managing Your Property Contributor
We need a bit more information on the property. How much did you pay for the property and how much is it worth now? What does it rent for? If you took the money from the sale and bought a new place in your new town, how much would that cost and what would you get for rent? If you bought the place 2 years ago and sell it, unless houses have appreciated in price, you will lose money on it by the time you pay realtor's commission, closing costs, etc.