Should I sell or buy and rent?

Question

I have a house I purchased on a lease purchase agreement which I'm able to assign. (ie I can sell it and keep the profit)

I have it for $137,500. The market is about $150k-$160k it would take about $5k in upgrades to reach that $160k mark and it may still only be $155k. Tough market to get exact numbers as it's pretty rural.

I could buy it and rent it out, downside is I'm moving 2.5 hrs away and wouldn't be by here to often. I could also put the 5k in and hope for the top of the market. Or I could sell as is and get $145k or better and walk away and buy my next one.

What are your thoughts?

Jesse T. · Answer

Are you the owner or do you have an option for it?  If you only have an option, you may see if the owner is interested in buying it back.

Jean Bolger · Answer

What would it rent for?

Linval T. · Answer

@Matt Cramer

Well, it depends...

2 1/2 hrs away is not that far in my estimation. You could visit it once per quarter.

If the rent is sustainable for you to hold on to the property, you might want to keep it as a rental.

On the other hand if you don't have the wherewithal to manage it remotely, then, hang up and move on.

Ironically enough, one day you might reflect on that podcast and say if you had only adhered to it :-)

The bottom line is that there is no wrong or right answer to your question. You have to go with your gut feeling at times.

Good luck with your final decision.

Randy E. · Answer

If you're moving 150 minutes away, I'd sell it and take the short quick profit and move on to the next one.

Matt Cramer · Answer

The reason I'm questioning it is from a podcast about how someone wished they had kept every house they had owned and rented them out.