Advice on Renting my Property or Selling it? Pros and Cons

7 Replies | Eugene, Oregon

Hi, I live in Redmond, OR and will be moving to Eugene, OR April 2020. I have time in my favor and I'm trying to make the best financial decision. I work in Alaska 8 months a year commercial fishing and am on my second property. 

I currently owe 280k on a 3 bed 2 bath 1750 sqft home. I can sell it between 330-360k as of today. Working out of town I will need a property manager (180$) and I'm 200$ short on my mortgage for what I can charge to rent. 

Total 380$ in the hole besides all the things that can occur being a landlord. 

Is Appreciation and paying down the debt of the loan worth taking that monthly loss if I can afford it?

Central Oregon is a highly desirable place and I'm located in a great neighborhood. 

(mortgage payment will drop 200$ after 20% equity automatically)

Or do I sell the property and hold on to the money until I find a good buy in Eugene, OR? 

Im new here. Any suggestions or advice would help! A lot of my knowledge is reading at sea and the experience of purchasing two homes. I am 26 years old and long way to go! 

Thanks,

Evan Griffin

I suppose it depends on your goals. My priority is cash flow right now so I would probably sell if I was losing money each month. Eugene and Redmond have both seen good appreciation in recent years but I don’t necessarily expect that rate of growth to continue so I’d be tempted to sell while the market is still hot. 

I suppose it depends on your goals. My priority is cash flow right now so I would probably sell if I was losing money each month. Eugene and Redmond have both seen good appreciation in recent years but I don’t necessarily expect that rate of growth to continue so I’d be tempted to sell while the market is still hot. 

Thanks for your input Lauren!

My goal is to make as much money on this property as possible (make it worth it). Move back to Eugene (previously had a home and sold 2 yrs ago) to purchase a property I can later rent. 

Wanting to be home more with my family and my main money source being in Alaska is my WHY drive to make the best decision and continue in real estate.

Mutual feeling on selling while the market is hot and obtaining more cash flow. Opening that freedom of not being tied down and the ability to act now. 

Evan Griffin

@Evan Griffin   If you want to make as much on the house, I'd sell it.  Your taxes will be different than it would be if you rented it out long term.  Plus if you are short $350 a month, that doesn't include repairs and vacancies.  Could you take the money from selling your house and buy another property where it does cover all of your expenses?

@Evan Griffin .  Selling sounds like a good financial decision.  I might think of diversifying your profit into 20% down on two smaller properties (ie. maybe a single family and a duplex) collect better rents and keep your cash flow up.  It would also give you the option to live local while still having a second cash flow property when that time is right.  Just my two cents.  Hopefully you will get more great ideas and find the strategy that works with your risk/comfort meets opportunity level.  Happy Hunting.

I very much admire and appreciate your input! With being home full time as the end goal anything to boost my cash flow while allowing me to be home with family is exciting. I've been successful with turning a profit on single family homes and have been researching to find the best opportunities in the Eugene market. Thanks for the advice. Talk soon. 

Evan Griffin