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All Forum Posts by: Andrew M.

Andrew M. has started 1 posts and replied 5 times.

Post: Very torn on renting vs. selling in east Orlando

Andrew M.Posted
  • Posts 5
  • Votes 4

Thanks for the extra detail @David M. - the other part of this equation is that I'd eventually like to buy another property where I am now (I'm currently renting). 
If a good opportunity came up today - I'd have to liquidate a significant portion of my stock market investments for a down payment, which I'm not really keen on...cause then I'm not diversified at all.
If not - I'm stuck renting for another five years or so (not the end of the world) to save up that cash, while still maintaining a sufficient personal emergency fund as well as a rental maintenance fund.

Lots of food for thought here and I definitely appreciate everyone's input. 

Post: Very torn on renting vs. selling in east Orlando

Andrew M.Posted
  • Posts 5
  • Votes 4

Thanks for the additional viewpoint @David M.. If you don't mind me asking, what led you to liquidate your portfolio? Are you forecasting a slowdown in appreciation in your market? Or are you looking for something more passive? Or something entirely different?

Post: Very torn on renting vs. selling in east Orlando

Andrew M.Posted
  • Posts 5
  • Votes 4

@David M. Ah, thanks for clarifying the 1031 rule..yep this was my personal residence.

Goals wise, I'm just trying to get my money to work for me as efficiently as possible with a moderate amount of risk. Honestly, RE investing wasn't something I was looking to get into within the next decade, but due to circumstances that possibility is on the table with this property.

I'm not thrilled about the idea of being a landlord, especially a long distance one...but I'm not 100% against it. Trying to weigh out if the potential upside would be worth it, but that's a calculated gamble. As I see it I'm betting on the housing market, rental market, YoY tax increases, and insurance companies. The only variable in my control is vetting tenants well enough and picking good ones.

The property is a great home, but the cashflow math makes me question whether it's a good rental or not. The other worry is that any tax increases year over year would keep it cash flow neutral/negative, even with rent increases.

Regarding any potential proceeds, letting at least half sit in a HYSA was my plan. The other half would get dca'd into equities. This let'd me have some liquid cash for any other RE opportunities in my new location, whether it'd be for personal use or otherwise.

Post: Very torn on renting vs. selling in east Orlando

Andrew M.Posted
  • Posts 5
  • Votes 4

@Shawn McCormick thanks for your insight. I do agree that the pool is a major liability so I'll have to shop around and potentially talk to a lawyer or two to make sure I'm adequately protected if there are any unfortunate accidents. I've already factored in pool maintenance costs in my original post...as that's something I would continue to handle. I wouldn't trust a tenant to care for the pool anyway.

@John Karg Thanks for the insight on the equity paydown and appreciation I'd gain by keeping. I do agree that letting go of this rate wouldn't be great, which is why I'm really pondering this decision...I think if the rate was higher I'd definitely be more comfortable with selling. 

If the property were to cash flow -$500/mo does that change your mind at all? I'd still be gaining $16,000 in equity a year which brings that return level down to ~9% on the equity...but conversely paying $6k/year to gain $16,000 in equity does seem like a pretty solid deal. I still haven't gotten any insurance quotes, but I imagine they wouldn't be insignificant to cover a rental home with a pool. I'd also have to factor in the tax increase as that'd eat into any cashflow.

@Dave Foster That's definitely something I was thinking about, and even potentially rolling it into a duplex for some house hacking potential. As it stands, if I were to keep this house I would need to rent for a few  years to be able to comfortably afford another down payment (I'm in a very HCOL area now). 

Post: Very torn on renting vs. selling in east Orlando

Andrew M.Posted
  • Posts 5
  • Votes 4

Hey all, have been lurking on the forums for a while and reading about all of your RE journeys. I have no RE investing experience and my investments to date have been in equities.
I am currently torn on what to do with a home I own, as changes in personal circumstances have moved me out of Florida 1k miles away and I won't be returning in the foreseeable future. Any advice is appreciated!

Background - home was purchased in 2021 for $345,000 with 5% down at 3%. It was built in the 90's and the roof was replaced in 2018. It's a 4br/2.5ba with inground pool. Retirement is still 25 years away.

My total monthly expenses (not including maintenance) are $2500. Using the 1% rule for maintenance has be inline with the costs since I've owned the home. Various minor repairs, and a few more major ones including a pool pump replacement have kept that estimate accurate. So about $290 per month.

Now the main dilemma comes from the fact that the home has massively appreciated since I've owned it and would sell for anywhere between $525k - $575k. After sale costs this would net me $175k+ as I'll be able to take advantage of the capital gains exclusion. At today's rents that's decade(s) of net rental income even when taking into account any potential increases.

Rents however would get $3k/mo on the high end, and more realistically around $2.6k/mo. So in the best case renting is cash flow neutral (or slightly positive, like $100/mo positive) after PM fees, and -$300/mo in the worst case. So as  things stand, renting is a pure speculation play.  This is also with my current insurance rate. I haven't shopped around yet, but I imagine an umbrella policy for the pool would increase costs.

I do have a smallish home maintenance fund saved of about $20,000 so could sustain any unforseen expenses for a tiny bit. 
Any major repairs while I'm renting the house out would eat into any appreciation for the year.


I don't need to sell the house, but feel that my money could be working for me better elsewhere. In addition, the equity I have in the home represents the vast majority of my nw, so I feel like I'm not well diversified. 

I'm also not in a rush to sell, I'd be perfectly happy letting the house sit for the next 6 months to a year while we see the impacts of any potential rate cuts. 

So RE pros, and Orlando experts, what are your thoughts? I am also very new to all of this and having a hard time making an educated prediction on the market in the next 3-5 years. The idea of being a very long distance LL kind of freaks me out as well. Maybe I'm psyching myself up, but I've read about some horror stories that I wouldn't want to endure.