Is it worth renting my first home yet?

[James Roux]

Good morning my question is, is it worth to rent out my current home yet and should I refinance to make it cash flow better for the long term? I’m looking to move about 30 minutes closer to my work which is in Orlando FL my primary home is in Clermont FL.

Current home purchased at $199800 in 2016 current remaining balance is $169k market rent is about 1600 from what I see online but seems like things are cooling off and rentals are staying on the market longer.

Payment is 1228 a month

Property taxes will be 2250 with homestead for next year I’m assuming it will be much higher after homestead is removed.

Hoa is 420 a year

Insurance is 1100 annual

PMI is $67 a month for about another 2 years

Also should I include when I’m running a rental calculator my initial closing costs or do most people exclude these if they’ve been living in it for awhile?

Cash flow based off intial purchase in 2016 is is about $120 a month

But if refinance and lower my payment at $169k

Cost about $3000 approximately

Cash flow 215

Doesn’t really seem worth it would take over 2 years to recoup costs

Any advice would be greatly appreciated thanks!

[Tyler Gibson]

@James Roux what is your interest right now? It might makes sense to refi but only if you have 20% equity allowing you to drop the PMI. It also only makes sense if you plan to hold the home for the next 5-10 years. Otherwise you might look to sell. I am a realtor and inventory in and around Orlando is at a low. So it is still a sellers market. Feel free to send me a direct message if you would like to chat further.