Sell or rent, home is owned free and clear

[Matt Ridenour]

Ok, here's the situation.  I own a 3/2 free and clear in an up and coming hipster market.  I had a tenant buyer in the place but he defaulted on the taxes. The only debt I have on the property is the 30k I had to pay in taxes, plus about 7k in rehab costs once he leaves (2 weeks.)  The rehab is paint and carpet plus a bit of landscaping so not much at all.  

The market is super hot still and I know I could get top dollar for it as a sale.  (About 220-230k.  Don't laugh, it's not San Francisco or New York!  :)  Rent should be around $2k per month but a range of 1800-2100 is what I'm looking at. Taxes are pretty high at 9k non homestead.  

Would you:

A. Sell the property and use the funds to reinvest elsewhere

B. Rent the property and take out a heloc to fund more brrrrs

C. Rent the property and take out a 30 year fixed

I'm looking for a mix of cash flow and portfolio growth.  I've got 4 years left in my w2 job before I retire.  

Any thoughts would be welcomed!

[Darius Ogloza]

One way to surely lose money is to be constantly in search of the perfect or better deal. Owning assets that generate positive cash free and clear is the goal. You have won. Never, ever sell unless at gun point. Using a portion of equity through a HELOC to make additional investments is a smart strategy provided you do not tank the initial investment through this tool.