Keep renting or sell

[Luke Schumacher]

Hey all,

Looking for some help analyzing the right move. I am torn between cashing out this property and selling it to pay off lots of student loans and vehicle debt and another house flip vs keeping to continue renting.  Below are details,  appreciate it!

Value $500,000

Purchase $290,000

Mortgage $270,000

Interest 3%
Payment,taxes,insurance $1500

Renting at $2200.

I have lots of equity I’d love to use to simplify my life but also don’t want to sell out too soon

[Alecia Loveless]

@Luke Schumacher Personally in this scenario not knowing your location, I’d sell it, pay off the debts, and make sure to stay debt free moving forward.

I’d then use the remaining funds to get back into the rental business. If that’s not feasible at that level in your market then I’d look OOS at a more affordable option. I don’t recommend that often, but for around $100,000 which is approximately what you’re looking at having left give or take $20,000, you can get into a 3-4 unit property in the Midwest that will have a greater cash flow than your current house once you’ve built up your team in that location.

Go to the Bigger Pockets bookstore and buy the book on out of state investing and read up on it and it’ll walk you through the process and help you get into the mindset. Best of luck and I think you’ll make greater strides investing over the next 10 years being debt free than keeping the one property and struggling to pay off the debt for the next 10 years while trying to build your portfolio.