Leasing house advice
Looking for some guidance on my situation.
Currently in EaDo - 3bd, 3.5 bath, 3 story single family, built in 2014. We bought in 2016, PITI - $2350/month on a 30 year loan + HOA $110/month (gate and lawn care). Only put down 10%, currently have about 20% in equity ($75k)
We are moving and now need to decide what to do with the house - sell or rent out. I like the idea of renting out in general, having someone pay the mortgage while it appreciates. I think I could get $2600-2800, which is kind of tight for cash flow, but still positive and not something I need. My main concern is potential costs for repairs. I don't think the house is constructed that well. It was our first home and we didn't really care about who the builder was, but we have learned how important that is. We have had a crack in the stucco patched up in 2016, then major exterior work done in 2019 to our house (and our whole development due improperly installed windows, no drainage, rotting wood/stucco damage - builder fortunately paid after getting lawyers involved). Primary bath shower doesn't drain that well, and quotes to fix it are $10k. At this point, the house is in good shape (except shower), but almost feel like waiting for something else major to happen. The homes in the development have actually depreciated since they were built based on tax records and recent sales even despite the hot Houston market. $374k brand new to now $345-370k, most recent sale probably $370k, but average probably $360k over past 3 years.
Anyone have experience renting out similar homes? My impression is a lot of the new 3 story homes in the loop are not built that great and potentially a money sink.
Would you sell and buy another investment property with better build and appreciation potential or keep and rent it out? Thanks in advance.