Should I sell or rent my current townhouse

[Edson Cruz]

Townhouse details

Loan for $177k
Owe $158k
Value of the townhouse $225k
current mortgage $1118 including PMI and escrow
HOA $300
Total Mortgage+HOA= 1418

We could rent the townhouse for $1700 or $1800 as we see others in our neighborhood for that price. This will require low maintenance as we replaced a lot of appliances including the water softener and water heater this year. Maybe not looking to have a Property Management company.

If we sell the house we calculate to get $45k profit. From that we will use $20k to pay back what we are borrowing from buying the new house.

If we rent it with the 50% rule we could get $180 to $200 cash flow. Then it will take us some time to pay off the $20k back to my family.

Thanks and please let me know your ideas.

 

[John Teachout]

Sell it. There's not enough margin to cash flow at all and you need the money for your other home if you're borrowing the down payment. Rents could rise but so can HOA fees, taxes, etc. I'd get your money back out and find a better investment.