To sell or not to sell?

[Radu Bordea]

Greetings, I have been a long time lurker on this platform and I want to first thank you all who share your time and knowledge on this site. I purchased my primary house at age 23 five years ago next month. The house was previously a foreclosure and the purchase price was $84,000 for a 2500sq living space built in 2001. I got a 3.7% 30 year FHA loan with 3.5 down. Before moving in I put another 7k-10k in upgrades like hardwood floors throughout, granite and upgraded the bathrooms. Most of the work was done by myself and other family members (my father had owned a flooring business years ago.) The current balance on the loan is around 70k and I am eligible to have the PMI removed in September if I pay the loan down to 66k (current monthly payments are about $720). Houses in the neighborhood now sell around 180k-210k with less upgrades than mine. Rents are from $1500 to $1700. I have entertained the idea of selling but I have not had a meaningful w2 income over the last 1.5 years and would have a hard time in qualifying for another loan. I am a single guy and now have the chance to move in with family without paying any rent.

[Michelle Conley]

What a great position to be in, Radu--good job on the buy! I'll be curious to see what others say but I'm sure it depends on what your long term real estate goals are. 

We just sold our primary home in May. We bought it 5 years ago as a foreclosure (sound familiar?) & made improvements like a new kitchen, deck, interior doors, etc. Our market is hot & we had a offer the next day above list. For us, it would not have made a good rental so we sold it & now have the tax free money to start purchasing fix & hold properties. We sold our 4 bed/4 bath for top dollar & we close on a 2 bed/1 bath duplex next week. We were able to make a cash offer on the duplex only because we took a leap & sold our primary residence. We'll refinance ASAP. Good luck with your decision & I wish I had been in your spot at 28!!