So let me start by saying I recently refinanced to save money before I decided to start moving into REI. I bought my house with a girl a few years ago, and we split up last year. It is also much more room than I possibly need on my own. So my plan is to downsize while I work on starting my real estate journey with rental properties and the such. My question is- after just having refinanced, would it be more fruitful to try and rent out my current home or perhaps renovate it and try to sell it at a higher price?
@Josh Cos There are a lot of variables that are unknown that could prevent someone from answering the question as best as possible. You mentioned that you bought the home with your ex. Are both of you on the loan ? If so , that could cause some friction if she is not inline with what your intended plan is.
If we assume that it is only you then the next step would be to get an idea of the rental market and what you would expect to be receiving per month. Another question ? Are you expecting to use said rent to pay your mortgage ?
I would like some more information to better help man.
@Anthony Hosea sorry yea i should’ve mentioned it’s only me on the mortgage! My current monthly is 1700~ and I see similar homes renting for 2000-2300/m. The extra profit would probably all go towards saving for future investments
@Josh Cos don't forget there are many other expenses/considerations involved with being a landlord. Things break 5x as fast in a tenant's home than an owner occupied home. Does your $1700 include taxes and insurance or are those paid separately? How old are the major items like appliances, furnace, AC, roof, HWT? Set aside money each month for maint, and CapEx. If you are very conservative in your numbers and your mortgage is being paid with a little money left over for you then I say keep it. Also consider appreciation in your area. If you hang onto it for 2, 5, 10 more years do you expect your home to gain value while someone else is paying your mortgage for you? Then I say hell yes keep it. If it's stagnant, or sales prices are high right now maybe cash out and buy a duplex and house hack?? Lots to consider. At the very least you can learn a lot while renting it out. I started the same way. Bought a "forever" home with an ex in my name, we broke up, I stayed a couple years but there were too many memories, moved out and rented it out ever since. It's not a home run rental, but it pays for itself and I make some money and I have great long terms tenants. Whatever you do, screen your tenants thoroughly. Good luck!
@Anthony King that 1700 includes taxes and insurance and the only appliance that is fairly old is the water heater. I’d have to do some market research to know what’s going on in the area, thank you for that
Can you house hack this house by renting rooms? You have the house and a low interest rate if you recently refinanced. Seems like the perfect entry to learning about rental properties. If you don't house hack and keep as a rental, make sure the house will "run itself" by confirming the rental income covers PITI and monthly allowances for expenses. See BP calculator for details on that.