Moving out of state. Rent out SFH or sell?
Hi everyone, I currently have a mortgage on a SFH in a decent area with around $40-50k market equity (refi one year ago, lived there for 2 years total). I'm planning on moving out of state within the year, and am trying to decide if I should sell the house or find a good property manager to help me rent it out.
I am new here, only several months into the concept of REI so I plan on house hacking in my new location.
Thanks in advance for your advice!
You need to look at the numbers. How much are your monthly costs (mortgage, taxes, etc) and what would it rent for? If you've only bought it 2 years ago and refinanced 1 year ago, you may not walk away with a lot of money after selling it as your refinancing last year cost you as will realtor's fees). How much is the house worth?
I'm in same boat and decided to rent ours. Had it listed for sale and no interest.
Not a simple answer though, and you need more data though to make an informed decision. What could you rent it for? How would you manage the property? Net operating income after expenses? Do you need the cash for use elsewhere?
Quote from @Warwick Solow:
Hi everyone, I currently have a mortgage on a SFH in a decent area with around $40-50k market equity (refi one year ago, lived there for 2 years total). I'm planning on moving out of state within the year, and am trying to decide if I should sell the house or find a good property manager to help me rent it out.
I am new here, only several months into the concept of REI so I plan on house hacking in my new location.
Thanks in advance for your advice!
Run the numbers, just like you would if you were considering purchasing this home as an investment. Does it cash flow? If so, keep it as a rental. If not, sell it and invest the money in a property that cash flows.
You have to remove the emotional and look at it strictly by the numbers.
Quote from @Theresa Harris:
You need to look at the numbers. How much are your monthly costs (mortgage, taxes, etc) and what would it rent for? If you've only bought it 2 years ago and refinanced 1 year ago, you may not walk away with a lot of money after selling it as your refinancing last year cost you as will realtor's fees). How much is the house worth?
When refinanced, $120k, currently around $170k