New primary. Sell or rent current home?
I've been actively searching for my next rental for a *LONG* time. Long story short, my market got really hot both as an investment location and also is growing rapidly. Great for my existing rentals, not great for my next acquisition. For a number of reasons, I've just purchased a new primary (close in 2 weeks) and I'm really conflicted about what to do with my current SFH. Compared to my multifamily, its just such a small cash flow that I'm having trouble convincing myself its worth it to keep and I should cash out my equity to invest in something else. On the other hand, the market is so high that the equity wouldn't go far toward purchasing a multi or anything else for that matter. Trying to play the mental game and convince myself that if I view both properties together as a portfolio, the numbers make a lot of sense even if the SFH doesn't do a lot on its own. Both my current rental and current primary are on 15 year mortgages with 12.5 years left. If I sold the primary I'd be looking at walking away with about $30k after realtor fees, etc. Keep current primary or sell? I'm also open to the idea of owner financing but don't really know where to start with that - I don't want it to sit empty for long regardless of which route I choose. Appreciate any feedback
Primary | Multi | Combined | |
PP + Renovations | $116,000 | $145,000 | $261,000 |
Expenses | $3,800 | $8,900 | $12,700 |
Rent | $16,200 | $38,500 | $54,700 |
Net Income | $12,400 | $29,600 | $42,000 |
CAP | 10.68% | 20% | 16% |
Existing Mortgage amt | $85,000 | $95,000 | $180,000 |
PI | $710 (15) | $791 (15) | |
Annual PI | $8,520 | $9,492 | $18,012 |
Net Cash | $3,880 | $20,108 | $23,988 |