Sell or Rent Out my Condo in the Bay Area?

[Jordan Riordan]

Hi everybody.

I'm an ICU nurse and purchased a condo in Green Valley (Fairfield, CA) when I was 23 and have lived in it now for 2 years. Selling price was $390,000 in which I owe about $340,000. There have been 2 identical condos sold nearby for $440,000 which gives me a bit of equity since first purchase. My current HOA is $240 with a mortgage of $2513 so my monthly total is about $2750. I do have PMI of $177/month in which I contacted the loan company to see about dropping it but they said I need 75% equity first (not quite there). The condo is in great shape and was turn-key when purchased.

I am wondering what direction to go next. I would like to have rental properties at some point but I'm not sure if this condo would be the best option as rent prices in the area are anywhere from $2500-$3000/month for larger single family homes. My question is whether or not to try to rent out the property once I am able to build up a down payment for another home in Napa or to sell the condo (getting rid of an HOA) and use my equity to purchase in Napa. I have thought about refinancing which of course would help with a downpayment but it seems as though rent would not cover the increased loan value despite a slight decreased in interest rate from 4.25%.

Please let me know what you think or if you have any other input I would really appreciate it!