Updated almost 9 years ago on . Most recent reply
Help with advice, Sell or Rent Out
6 months ago I started building a new home in a different part of town. Rather than sell my existing home, I decided to turn it into a rental home. The numbers weren't great, but I had a hard time allowing myself to sell it. Now that the time is here, I'm having second thoughts and looking for help. The house was built in 2010 in a cookie cutter subdivision. Today my agent received a call from another agent who had a buyer who missed out on a home with the same floor plan and wanted to see if i would consider an offer on my house. The location is just outside the San Antonio and Converse city limits in Texas.
Expected Home Value - $178k (Purchased at $145k)
Projected monthly rent - $1,375
expected cash flow assuming 8% capex, 8% maintenance, 10% vacancy - $80 a month (Principal pay down is $170 a month)
I only owe $116k so I expect to clear $43k after selling fees and commissions. The question is, should i continue with the plan to rent out the property or should i look at taking the sale proceeds and buying a property that would cash flow better? I imagine that since it was my former primary residence that i am exempt from the capital gains whereas after 5 years that would no longer be the case.
What details did I leave out of the consideration?