I will try to make this as brief as possible but it gets a little complicated. After years of being underwater in my home i can finally get out without bringing money to closing.
My wife and I want to downsize and move. The question is sell or hold and rent.
2 loans= 265k first - $1700 payment
78k HELOC - $300 interest only adjustable payment but will be $650 when locked
Rent potential $2200 per month
House is in excellent condition 9 years old.
The HELOC is pretty much consumer debt from when we used to use our house as a cash machine (ugh).
What would be the logic of renting? You would lose money every month. Is it hope of appreciation? Do you plan to move back in? I would not hold a negative cash flow property under any circumstance. Can you afford the vacancy for 3 months if need be? Do you want to be on the hook for repairs? The hassle of managing tenants? All for a negative cash flow? Makes no sense. Sell the home.
What are you goals? What do you hope to gain from renting? How much did you out into the house? How much principle pay off is left? Can you afford to carry the house at all? Are you willing to self manage? How long till the helix is paid off?
We are buy and hold investors. We have done very well turning personals into rentals when we are transferred. My husband has a very transient job. That being said we also buy pure rentals.
Your primary mortgage is actually great you have $500 to "spare". The helix which it sounds like is fancy "credit card debt" is what's killing you. So really by renting the house out you are paying off your crest card debt with some coming out of your pocket.
The question is do you want to sell the house and come out clean? Or do you want to deal with the stress of the house and on good months pay $100 a month on your credit card and bad months pay more?
We self manage and own class a properties. Which sounds like yours. We have "very" tigh margins but have done very well by controlling costs. I talk about our strategies, goals and success on my website. You might over time be able to turn this into a great investment. The issue is your spending and what you want to do.
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