Moving out of CA into TX! Should I rent out my home or sell it?

[Paul Kim]

We're one of the many people leaving California for good ol' Texas. We're buying a brand new home in the Austin area. Here's the decision I have to make: Do I keep my home in Anaheim, CA, and rent it out? Or do I sell it, take out the down payment / principal paid / and equity made, and use that to throw it at the down payment of the new home (plus invest it into a rental property elsewhere)?

We refinanced the Anaheim home mortgage recently, and our monthly payments with property tax come out to about $2606.00 a month. We pay $165 for our pool maintenance and landscaping. We found a potential property manager who would charge a 6% flat rate to run our home as a rental. It's possible to rent our home in the $3000 - 3200 range. If we charge $3000 a month, we would basically break even or lose money (depending on repairs). If we charge $3200 a month, we might make a $100 a month. 

I need some good advice and recommendations! Thanks!

[Wyatt Franta]

Hey Paul,

The answer here lies within your plans in the real estate business. Anaheim has received a lot of investment dollars in A-Town, Downtown Anaheim, and into the ARTIC Metro to support the job market in & around Irvine. If you believe property values & rental prices in Anaheim will continue to rise long-term (or align with your real estate goals) because of this, and you can see yourself holding an out-of-state property, you may want to hold onto the property and rent it out.

However, if you believe the market is currently near the peak and want to consider selling the property, get a net closing sheet from a local Realtor or local title company to get an idea as to what you'll walk away with after all is said and done. 

Ultimately, there is no right or wrong answer in this situation, it comes down to what will work best for you in the end.