Advice on Selling vs Holding and Renting
Hoping for some advice from those that have been there before.
So I'm trying to weigh selling my rental vs keeping and renting out through a management company.
I am an out of state investor. I bought a townhome in the Charlottesville, VA area in 2019 where I was going to school. Lived there and rented half out to a roommate until 2023. I then moved out of state, and I've been renting it to a friend for the past year. However, he's moving out in October of 2024.
I initially bought the property for around $215k, but it's now worth ~$350k with about $165k left on the 30-yr mortgage that is at 2.85%.. I could rent it out for around $2200/mo. Escrow payments are around $1100/mo and HOA is ~$200/mo. After crunching the numbers I'd be cash flowing around $600-700/month if I hire a full service manager (and this is without accounting for any repairs, which it does need). Orrr I could sell it and get about $150-160k in cash to invest in in stocks or in a larger property closer to my current residence. The traditional ROI S&P500 for that amount of money would be fairly similar after accounting for everything. Just not sure if the headache and stress of owning a property out of state is worth the potential upside.
Any advice on what someone would do or has done in a similar situation?
Most Popular Reply
1031 exchanges are good for level up - income, age, location, appreciation. if you like what you have, keep them, if not sell them. I know that sounds simple but the question usually comes down to preference and NEED. Hope that helps.