First time homeowner looking to get into relabut facing a dilemma

[LeOla Fletcher]

Hello everyone,

This is my first property bought April of 22 @342,000 w/a 3.7% interest rate. I owe $320,798.76. Estimated value is about $404,379 but may not be accurate(it’s the amt that shows on my mortgage companies app). A home next door to mine is on market for $399,000 very similar to mine, just bigger. 3/1 renovated about 1300sqft. Mine is 3/1 renovated(paid for by me) & 1020 sqft.

I am currently 2months behind on my mortgage. Payment is $2332.48. I have listed my house for rent for $2400 trying to get a section 8 tenant because of the guaranteed money from the state but willing to lower that amount if need be. I am ok w/having to also pay a few hundred dollars to cover my mortgage if I can’t get $2400 monthly for it. I only listed it at that amount because $2460 is the most I can ask for in rent w/section8. 

My question is, is it a good idea to try to rent the property or should I try to sell it? I want to get into real estate investing. So, renting out my property seems like a good start. However, because I am behind on my mortgage, I am not sure if it’s a good idea. Any advice on this matter is greatly appreciated.

[Julia Lyrberg]

Hi LeOla, It’s great that you’re considering using your property as a starting point for real estate investing! Renting it out could work, especially with Section 8, as the guaranteed income could help cover most of your mortgage. However, being two months behind adds urgency. If you can’t secure a tenant quickly, selling might be a safer option to avoid further financial strain. You could use the equity from the sale to get back on track financially and reinvest in a more manageable property to kickstart your investing journey. Consider consulting with a local real estate agent or financial advisor to weigh your options.