Updated almost 5 years ago on . Most recent reply
Should I sell my house or rent it out?
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?
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@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!