Take 100k equity or cashflow 800/mo??

[Will Maddox]

Hello BP!

I am new to the forums. First and foremost, I want to thank everyone for such amazing content. I am hooked on the podcasts and have started listening and learning everyday. I've always had a passion for real estate investing but only recently have I found Bigger Pockets. My long term goals are to build a portfolio of multi-family properties, and exit the rat race as I am a terrible employee. My current predicament is deciding whether it is best to sell or rent my current home which is my first home. 

The property is in NW Austin, a hot market, and has appreciated significantly. I have owned it for 5 and half years. It consist of a 1350sq ft main house, with a 1000 sq ft guest house. Ive always rented the guest house to help pay the mortgage. It currently rents for $1100/ mo. The mortgage is $1650. Earlier this year, I refinanced to pay off credit card debts and both vehicles. The cash-out left me with little money to invest after paying debts. Otherwise I wouldn't have this question. I would have used the money for a down payment on a duplex and keep this one as a rental.

As of recently, my fiance and I have decided to move back to Arkansas, where we are from. Looking into the NW Arkansas area, which is also an up and coming region. At first, my mind was made up to sell the house and take the equity to purchase a duplex or two, but now I'm second guessing it. 

Currently I owe $210k. Appraisal came back at 280k, but the property is so unique that appraisers aren't sure how to value it. There are no comps. There are other homes in the neighborhood with identical floor plans, but obviously no guest house in the back yard. Those floor plans are selling around 265k-280k. Going off of dollar per sq ft in the neighborhood, I should be closer to the $310k - $340k range. Plus, I assume there has to be a premium for such a unique property that someone else might want to house hack as well. Maybe I'm wrong, but its not cheap to live in Austin city limits.

Therefore, I am looking at selling and taking roughly 100k equity to start my dream of investing or I could rent it and cashflow approximately $800/mo. The main house alone would rent for $1700. With the guest house, total rent would be closer to $2500/mo. I've never rented both units as a whole. Doing so would be the only way to make it an easy transition. I've rented them both out separately in the past but luckily it was to some friends and it made it easier to be a long distance landlord. 

Which brings me to my next problem. I'm not thrilled to be a long distance landlord, hence why i want to start investing in areas closer to where I'm from. I'm very handy and for the time being, prefer maintaining my own properties. On the other hand, I know I will probably regret not holding on to this property given how much Austin is growing and appreciating. Another factor is that I don't have a high income job. I work on a commission only basis, and typically gross 45k/yr. Taking 800/mo and not having significant savings to tap into if something were to come up, would be difficult. On the other hand, with selling the property I would have plenty of cash to take care of any unsuspecting problems. 

Sorry for being so long winded. I think it helps to write this all out, and think "out loud' so to speak. I'm leaning more toward selling, but looking to get some insight from someone who has more experience. Are there any other options that maybe I haven't thought of? 

Thank you for any help!