Should I keep my single house or sell it for tri or four-plex?

[Toshiki Hoshino]

I have a rental that my tenant pays $1100 a month and pays for all utilities including HOA of $280 a year. My mortgage is $1710 PITI. I am pretty confident I'll be able to sell it for $195k and I owe $23k. House is 20 years old so I'm going to have to redo the stucco and roof in next couple of years. I'll have my loan paid off by Dec of 2019. Should I sell it now since the market is doing well and look into tri or four-flex? I am looking forward to everyone's advise. Thank you!

[Aaron Hunt]

Originally posted by @Toshiki Hoshino:

I have a rental that my tenant pays $1100 a month and pays for all utilities including HOA of $280 a year. My mortgage is $1710 PITI. I am pretty confident I'll be able to sell it for $195k and I owe $23k. House is 20 years old so I'm going to have to redo the stucco and roof in next couple of years. I'll have my loan paid off by Dec of 2019. Should I sell it now since the market is doing well and look into tri or four-flex? I am looking forward to everyone's advise. Thank you!

$1380 < $1710

Answer: Yes.

What is market rate on rent? That's a large difference between rent and PITI for a $200k home.

If you only owe $23k, you could have HELOC'd by now or cash-out/refi'd way down. Why is it $1710 to begin with? Your mortgage rate would have to be through the roof.