Rent Out or Sell Dilemma SoCal

[Andy Freeman]

I currently have my condo in Costa Mesa/Newport on the market (primary residence), but despite a lot of showings, no offers have come in. I wasn't really thinking of selling initially, but a couple condos in my complex sold for over $900k, and I thought I'd take a shot to see if I could get somewhere close to that. I'm listed at $899k, and don't want to really go lower. I paid $810,000 2 years back, and after paying out closing costs and commissions, I don't stand to make much if I sell for anything below the $899k number I'm at right now. However, I would recoup the dead equity I have in the house, and could likely purchase a couple rental properties using that money. The alternative is to lease it out, and because it's 0.8 miles from the beach, the comps around me actually rent for a decent 4-5k per month. If I can rent it out for $4,500, and my all in number is $4,100 per month, is that enough cash flow to justify holding on to the property? Ideally rent would increase over time, and further appreciation would occur, but there is no guarantee. Also, it's only a few years old, so repairs and maintenance costs should hopefully be held in check. I have a nice chunk saved up to get started with a rental property (location TBD), so I don't need to sell, but I'd love to hear some opinions of those who have been down this path before. This forum has really helped motivate me to not just sit and be complacent with my investment future. Thanks in advance.