Worth the hassle of landlording SFH vs selling - South Tacoma
Hello all!
Im wondering whether the South Tacoma rental market is worth the work to become a landlord vs selling and putting the gains in the market.
Particularily, Im not hearing many success stories in the region and there seems to be a preferrence for selling (judging by the for sale signs ive been seeing recently).
The house I have is 1800sqft, 3bd, 1.5 bth rambler on a 0.25 lot. Many upgrades were already performed to increase the valuation. And I was able to lock in a 2.99% interest rate around COVID.
Option A - Rent it
I would net +$100 every month assuming a $2650 rent after recasting my mortgage by 30k. This is low but I have another large buffer to cover maintenance and vacancies. I plan to recast it yearly by 30k to increase cash flow by $100.
Option B - Sell it
After sale conservative numbers would be 50.2k net
(460k - 350k) - (460k x 13%)
Blocked on which scenario is appropriate for the market here...
Any property management company recommendations are greatly appreciated as well.
Thanks
Most Popular Reply
The question I'd ask is not about South Tacoma being the pivot between hold/sell; it's about the owner's desire, ability, and fortitude to continue with this rental or sell.
No spreadsheet can take into account the multiple factors involved in either a sale or rental hold comparison, because a spreadsheet cannot predict the future; it can only provide scenarios based on what input you provide.
So, will the next tenant work out, or if sold, will the closed price, minus taxes, be worth it?
Every town and city has it's own "wrong side of the tracks", and even there you'll find examples of well performing rentals among the neglected properties.
I'd advise to sleep on it, pray on it, and follow your gut.