Denver - Sell or Rent Advice

[Landon Miller]

Good Afternoon (sorry this is long but want to give a full picture)

I bought my first house here in Denver Feb 2020, my budget wasn't huge so I have a 640sqft (2br1bath) single family with a large yard in a C class (assumed) but improving neighborhood. There were some interior updates done previously (updated kitchen, flooring, windows), but much better than many in the price range. I have been updating since day one and many ideas for additional projects as I wanted to convert to a rental, refi to pull cash and buy a bigger primary with my GF (she is not an owner on my current).

I believe to get it rent ready (next summer) I would need about 14-16k more and then if I factor in AC/Furnace we're creeping into the 20k range (house has asbestos siding panels and the broken ones need replaced and then get the house repainted 6kish or I have it covered with vinyl which kills two birds but probably 2-3k more at 9k). Roof will eventually need repair as well as sewer line (not immediate but definitely within 10 years)

We need to move... and I can't decide what is a better option.. Sell or try and push through and get it rented. I am pretty confident the property would cash flow $100-200 after paying a PM (not dealing with renters) so essentially cash flow $ 0 - 100 if I factor in saving for repairs.

I want to keep it as a rental especially for the appreciation (say what you want but Denver will always be outgrowing most places in the middle of the country) and with the neighborhood slowly improving. But I can't escape the reality that currently I do not make enough to float periods without renters while splitting a mortgage on a new house.

If I were to sell, doing minimum repairs (I don't think I can escape 8-15k worth) I should be able to walk away with about 50k (closing costs/commission already paid), and after a new downpayment/savings/money for updates I would have about 20k free to look for Cash Flowing out of state.

What would you do?