Rent or Sell - Possible 1st Rental

[Alec J.]

Good evening! As of late I have began my journey towards RE investing and rentals, with research. I have purchased a new home and am looking for some guidance on the decision to sell or rent my home out. The money I would pocket on the sale is not "needed". The hardest part for me is finding something comparable in my area that is currently renting. The home is a 2,350 sq. ft. 4bd 3.5 bath, 2 car garage, with a finished walkout basement, say another 800 sq. ft., complete with a full bath and an oven/range free kitchen. The location is off the beaten patch, dirt roads, in a paved sub-division surrounding a lake. I am not lake front, across the road with a view, but the home has lake access. PITI is currently $1,411. Market value on the home is $380-$400k with $270k owed. The neighborhood is well kept, clean, family friendly and quiet. Home is 20 years old.

Immediate repairs would be to upgrade the hot water heater, furnace, paint the deck and interior painting. All appliances are new and can stay. Roof will need to be completed in 5-7 years. I am a construction professional and have the ability to handle this either myself or through my subcontractor network. Upfront costs to rent  is <$10k and figure $25k-$35k total in the next 5-7 years.

Zillow claims a $2,834 rental price. I am having trouble finding any other rental data on a home like mine in this area. With the numbers at $2,834 it makes sense to me to rent the home out for 5 or so years and then sell. Should gain a healthy amount of equity in that time with the market and paying down. The main goal right now is to get started, cashflow and long term wealth of course. 

Where can I find more rental info?

Does this make sense to rent?

Is this to much home for a first rental?

[Alec J.]

@Jody Sperling Thanks for that perspective! Any tips on how to judge the local market? I am leaning towards listing for rent and just seeing what happens. Only thing to lose is the monthly cost and if I get no bites I can just sell. If I land a renter, I can then upgrade the mechanicals and such with borrowed money as recommended.