Updated 10 months ago on . Most recent reply
Advice - Long Term Rental in Tough HOA or Sell
Hello everyone,
My husband and I are working to build a rental portfolio. We recently relocated from our primary residence to a rental property ourselves (we recently welcomed a baby, and our house no longer accommodated our evolving needs). We made the decision to rent and prepare our house for long-term rental. Our plan is to purchase again with a better mindset of turning that into a profitable rental.
We have diligently completed all the necessary steps and are on the verge of signing a management agreement with a property manager.
However, we are experiencing some doubts.
1. When we purchased our home in 2020, we never envisioned using it as a rental property. Our HOA is quite stringent. We had hoped to rent our house for short-term or mid-term stays. Unfortunately, the HOA prohibits leasing for less than six months.
2. As first-time landlords, we considered self-management, but as new parents who work full-time, we decided that hiring a property manager would be the best option for long-term rentals.
3. If the stars align, we estimate that we could potentially earn $1,000 to $1,500 per year from the property. Additionally, we have equity of approximately $145,000.
Now, we are faced with a dilemma: should we sell our current property and purchase in a more favorable neighborhood, or should we rent the house and let it pay for itself.
We would greatly appreciate any advice you may have. Thank you!