Question about my Shore Rental

[Tyler Costantino]

Hi,

I bought a property a few years ago for $360k. I ended up over investing on a complete Reno down to the studs and now I’m completely in the house for about $800k. Since the market has taken off I recently listed the home and have gotten offers for around $1,030,000. I refinanced about a year ago and have a remaining balance of about $500k on the house. My question is this. Given that the market is at its height I feel like the offers I’m getting now I may not be able to get for a few years once the market pulls back. The summer months my property can easy rent for 20-25k a month bringing in about 60-75k a year. My monthly carrying costs are around $4500 total with me taking back around $2000 equity every payment. Do I keep the house and have it pay for itself with some small profits every year but tying up a decent amount of my cash, or should I sell it, take the cash and reinvest in more smaller properties? I’m currently living in the house now so I would also need to purchase or rent something else if I sold. I just don’t want to sell in a high market and also go and buy a house that’s most likely 10% over typical market value. Sorry for rambling just trying to get all the info out. 

Thanks for any input!