Single family home in small town
Looking for some advice on how to determine if renting my single family home in a small rural town (about 3000) south of Chicago would be a better investment than selling and putting that money into low cost index funds. I would be moving out of state and need to use a PMC. I am in a desirable area of town and homes sell quickly but do not see any homes listed for rental or know any in my neighborhood. I have owned the home for 5 years (purchased in 2018), have under 3 percent interest rate but also did a 15 year mortgage. So this wouldn’t leave me with a huge profit each month in rent even if I can get 1 percent of the property value in rent monthly. I would be renting in a higher cost of living myself and don’t see myself moving back to his area in the future If I sell. Selling would leave me about 70000 in profit that I could invest on the other hand. I know it’s not a ton of information but any resources on how to make the best decision for my situation is appreciated.
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@Lauren Johnson, factor in the tax savings of selling NOW! You would pay no income tax on that $70k profit if you sell now while its still considered your primary residence. If you rent for a few years that benefit goes away.
Considering that you are unsure of how this unit would be as a rental and how you might manage it from a distance, I would lean in that direction. If you want rentals, use the money to buy rentals where you want them to be where there is strong demand, where you can manage them hands-on if you wish, OR invest in something passive as you suggest.