HELP, Sell or Rent our Home

[Paris Shewey]

Hi BP family!

My wife and I own a home in Vancouver, WA where there is huge demand for homes and low inventory and the markets really hot for selling. Most homes are going for well over asking and waving inspection.

We are feeling torn between selling our home and keeping it as a rental. If we sell it now after closing costs we should walk away with anywhere from $130,000 to 160,000 depending on sales price and closing costs. We put $60,000 down and have about $20,000 in repairs into it. We would take our money and look for a a duplex, triplex or four unit multi family we could brrrr.

If we keep the house as a rental we If we keep our house and rent it out the mortgage is $1390 and the average rent in our area for the same type of home of $1950. We would probably need to put at least $3500 into it now to redo the plumbing. We think it would cash flow $350/month.

We don't have cash and we want to keep investing so we would take out a HELOC but we would likely only qualify for 60-80k maybe 100k if we pay $700-800 for an in home appraisal and go with a higher rate around 4.5 variable to get 90% LTV.

Our goal is to have rentals and it seems unwise to walk away from a cash flowing rental but also it seems like if we can capitalize on all the equity and the market being so hot maybe we can take the money we walk away with and find more doors with higher cash flow and be able to invest at a faster rate.

Advice?

[Allen Wu]

@Paris Shewey

I cannot speak on your market. However, I bought my first home back in 2015 in CA, had to move out for a new job move, so rented it out. Could have sold for some solid gains, but still kept until now.

In short, I’m a long term buy and hold investor, so I rack up my home purchases, save next 20% and then repeated. For me, i would just buy your next home and rent this one out. I know lots of folks here are brrr fans, but I have demanding job, so try to keep it simple for myself.