Sell or Rent

[Chad Roberts]

Hi All - I bought a primary home in 2018 @ 2.75% for 650k and have ~450k remaining on the mortgage. I have my property listed for rent for $8500 and will likely rent between 7k-8K (similar homes rent for this amount). A potential renter just offered to buy my home off market for $1.1M, all contingencies waived.

Also, I'm in FL where climate change is a consideration of mine for long term stability of the market, as I've seen flooding and increases in insurance costs.

My ultimate goal is FIRE and I'm planning on moving to a lower cost of living area to increase my savings rate (Midwest, Portugal, AZ).

Recap:

Sell: 1.1M ( ~$500k Profit)

Hold: Rent for $7500

[Ray Hage]

Quote from @Chad Roberts:

Hi All - I bought a primary home in 2018 @ 2.75% for 650k and have ~450k remaining on the mortgage. I have my property listed for rent for $8500 and will likely rent between 7k-8K (similar homes rent for this amount). A potential renter just offered to buy my home off market for $1.1M, all contingencies waived.

Also, I'm in FL where climate change is a consideration of mine for long term stability of the market, as I've seen flooding and increases in insurance costs.

My ultimate goal is FIRE and I'm planning on moving to a lower cost of living area to increase my savings rate (Midwest, Portugal, AZ).

 If the 1.1m offer is serious and you really plan on completely moving out of the area and not rebuying later within south FL, it might be worth selling. Even with the climate issue, people are still flooding (see?) in here. You can probably make a lot better investments in a cheaper area like AZ or midwest , especially if you plan to manage it yourself. If not, you could use the profits for other investments if you are not really into RE.

If you plan to keep the house and rent it out, you could make a good income every month but it will be a much slower process plus you'll be paying rent somewhere else (unless you have enough to buy another primary). You'll need a good PM here and in my experience there are not a lot of them. I know a couple good ones, however. 

You got a bit of a tough decision but it is easier if you know your longer term goals. From what I gather, you are probably better off selling.