Do I sell paid off home (LTR) in Palm Springs...?

[Wyatt Degaine]

Recently moved out of our SFR in Palm Springs, Ca due to my wife getting a promotion with Marriott we moved to Denver. My house was paid off as a gift from a family member. My question is should I keep the rental and refi or HELOC to get a place out here in Denver and also another income property using the Equity. Or should I sell the existing property...

Property Facts:

Property Value 275-290k

Rent $1750 ( could be more but I cut the price cuz I needed a tenant quick and He‘s trustworthy)

Property Taxes $5200 annual ( has Mello Roos 🤮)

HOA $150 monthly

My tenant has mentioned buying the place which would help me because im licensed both in Cali and Colorado so Id save the commission . Kind of a unique situation that I need experienced ensight on...

[Kate Johnston]

Figure out what your margin would be in each situation. 

Option 1: Keep the CA house, rent it, and take out a HELOC to buy something in Denver.

Option 2: Sell the CA house and use the funds to buy something in Denver

Add up all your costs and profits for each option, total, and see which one leaves you with the most money at the end. That's your answer!