Updated over 5 years ago on . Most recent reply
Rent or sell my house???
What do you think I should do with my home.
I called around to a few property management companies and they said they can rent my house out for 1500-1600 a month. My mortgage, taxes and insurance come out to $1027 a month.
After property management fees I’ll cash flow about 300ish-400ish a month. It was built in 2008 so my cap x will be pretty low. I’m in a good appreciating market in Oregon too.
Since I’ve lived in the house for 2 out of 5 years I won’t get taxed on my gains. I bought the house for 173k with a va loan and I can sell it for 235-260(houses on my street have sold in that range)
I’ve house hacked my 2 bedrooms the whole time I’ve lived there so I haven’t really ever paid for my mortgage.
Should I sell the house and put that money into a out of state brrrr deal and just keep recycling my money Or should I just keep this house, take the cash flow and have renters pay it off.
If keeping it is the better option, I have a hard money lender that I can borrow money from to start my brrr cycle.
Most Popular Reply
Hi Patrick,
Great questions. I have house hacked two houses in the last couple years and am always an advocate for keeping rental properties as they are incredible wealth generators for the long term. You can do a Primary Rate/Term refinance of your current place and pull out up to $2000 without being a cash out refinance. (Cash out refis have worse rates than a rate/term refinance) You can lower your monthly mortgage payment and increase your cash flow even further before leaving. Per Fannie/Freddie guidelines, you need to live in the house for 12 months after Purchasing a home. If you do a rate term refinance as a primary residence, you can then immediately go and purchase your next house hack. You do not need to live in the house for another 12 months. Would you want to do a VA or conventional loan for your next house hack?
If I were you, I would definitely keep the house! If you have a hard money lender and a little bit of your own cash for a BRRRR out of state or another house hack locally, I would keep your current home in Albany and have the renters pay it off. I grew up in the Corvallis/Albany area, and know that to be a great market to hold long term rentals. If you are already achieving great cash flow, the appreciation is just icing on the cake. I am also a loan officer here in Oregon, so I can speak to the specifics of your situation more if you would like.
Please DM here on Bigger Pockets if you have further questions. I am happy to help!