Should I sell it or rent it?

[Mike Lynch]

Hi,

A while back, we moved from a small Ranch Style home 7 miles from Holden Beach NC, ( 3 bed 2 bath ) which is worth around $240,000 today. We took out a loan for the price of $107,000 in 2001. It needs to have some big oak trees cut down, probably around $7000.00 due to the size of them. They are just too close to the home. We owe $40,000 on the home right now and are making monthly payments of $760.00.

We own the home that we live in now and do not have to make payments. We also own 2 small condo business rental units which bring in $2000.00 per month total. They are 1000 sq. ft. each....... We are trying to figure out what to do with the Ranch Style Home....... I am not sure that it can rent out for enough money per month to make it a good rental. People are used to paying around $1000.00 to $1200.00 for rent here, and I wouldn't want to pay $2000.00 plus per month for that house since it is only 1,350 sq. ft. ...... How much should the rent be right now, national median?

It is in a great location but I am not sure what to do with it..... I would like to have as many properties as possible before I retire, just like a lot of others. I don't want to have sellers remorse if I get rid of it....... What would you do in this situation?

Thanks

[Mary Jay]

Lets say you sold it. Got 200K in profit.

What are you going to do with that money?

Are you going to buy 5 other properties that cashflow?

Or are you going to put it in the bank?

Where I live (Phoenix) you cant touch anything below 375K. The rents are going to be 1.8K if not less...

I think before you sell, figure out where you want to buy and if there is anything decent that will cash flow