#askBP Need some guidance on whether to sell or hold

[Russell Harris]

#askBP

Hey BP community. I have a conundrum that I'm hemming and hawing over. My one and only rental property is my first residence. I've been renting it out for about 2.5 years and my tenants have informed me that they have put in an offer on a house and, if all goes well, will be breaking the lease and moving out in 2 months. Here's where I'm stuck:

As a rental, the house cashflows around $250 a month. However, I have about $12,000 of equity in the house. I'm torn on whether I should continue renting it out, or sell and invest the 12k into other property/properties that may cashflow more.

I'm really anxious to grow my portfolio, but I have to make calculated risks and don't want to move too hastily. That being said, I don't want to get stuck in analysis paralysis either.

It's also worth noting that I utilized a first-time-homebuyer's loan through my parish (county) and if I sell the house I will have to pay back a nominal penalty (rules stipulate it has to be owned for 5 years to avoid penalty. I've owned it for 3.5 years) of around 1 - 2 thousand.

Any and all input is appreciated. Thanks y'all!

[Account Closed]

@Russell Harris You already own it, why not keep it?  Is that $12k actual equity? Meaning have you accounted for all the costs associated with selling? repairs from the tenant, realtor commissions, closing costs, holding costs, buyer requested repairs/updates etc? If not, that $12k goes away real fast!