Rent or Sell

[Eric Cozby]

Hello BP Community,

I currently own my primary home in Cape Coral and I am considering either selling or renting the property.   I bought the house before it was built, it was finished and closed in March 2022, and I have lived here since then.  It has appreciated considerably from the purchase price.

Monthly rent is estimated to be around $2000 per month, and after running the numbers through the BP Rental calculator, this will give me approx. $200 per month cash flow.  However, the city will be expanding utilities into this area in the near future, and will be assessing each property approx $35K to be paid over 30 years at 6% interest

Or I can sell it.  Purchased at $202K, current market value is roughly $300K.

Thoughts?   I appreciate the input.

[Eric Cozby]

Thanks for all the great insights. For reference, it's a SFH, 3/2 with 1550 sq. feet in NE Cape.

@Corey Morrison
Hadn't really considered a lease option. Can that work with a mortgage on the property? It's not in a flood zone, from the new FEMA maps I can't see a designation for it.

I would be subject to capital gains since I've only lived in it 15 out of the 24 months.

@Adam Bartomeo
Would be great to discuss some possibilities.  I would be more inclined to rent if I was confident I could cover the costs plus assessment with future rent growth.  I think the $2200-2400 range would cover it.