rental, refi or sell

[Mike Bell]

Hello, I am 25 and currently have an FHA loan on a 1400 sq foot 2 bed/1.5 bath town home that I occupy. payment is just shy of 600 a month with PMI and Escrow. Im looking to buy a home with my VA loan soon. My question is should I sell, refi or rent my current townhouse. average selling price in my neighborhood is 105k for the same sq foot but with 3 bed 2 bath. average rental rate is right around 1,00-1,150 a month. I currently owe about 86,000 on the loan. If I refi into a va loan it will make my payment under 400 a month not including taxes and insurance. what is your recommendation ?

[John Warren]

@Mike Bell the answer lies more in your long term goals than in these numbers. It sounds like the house will cash flow fine. Do you want a portfolio of sfr's? I personally chose to flip my home in Riverside, IL because I wanted to get into the multifamily game. If you have lived in the place for at least two years you can take the proceeds tax free, which is the best way to roll your equity!

If your long term goal is to own a bunch of houses, I would say hold onto it. Use whichever loan product makes the most sense long term. You won't be able to pull the FHA 3.5% down strategy for ever anyways.