Need advice: Sell or hold as rental?

Question

My husband and I are relocating from San Antonio to Dallas. We are currently debating whether to sell our home in SA or keep it as a rental. Here are the numbers:

Current FMV: $140,000 (up 30k from purchase 4 years ago)

Current FMR: $1100

Mortgage, Tax, and Insurance: $700/mo. Interest rate 3.5%

It would be our first rental property. We've been interested for a while but the market for investment properties in SA has been too competitive lately. We've already purchased a home in Dallas as new primary residence.

We have opposite opinions, so any advice from seasoned investors is appreciated! Thanks!

Adam Acord · Answer

As is true with most cities, certain pockets of town rent better than others.  Certain houses make better rentals than others.  I don't like to generalize when evaluating properties.  I'd recommend speaking to a local professional property manager with experience in the area, not a general real estate agent in the area.  Property management is a specialty.  I'd be happy to give you an honest assessment of your home as a rental, if you'd like.  Reach out directly, anytime.

Nathan Parrott · Answer

With those numbers, I'd be looking to do a cash out refi or sell.  Use the proceeds for additional investment properties.  Have you all built spreadsheets and run the different scenarios?

Account Closed · Answer

I would totally rent that out.  Not sure what you make on your W2 job, but depreciation increases that profit come tax time.  I don't plan on ever selling a house again.  Maybe when I'm in my hundreds I'll change my mind.