Rent or sell former primary?

[Jay McAllister]

Hi bp nation I Need Advice. Debating selling or renting former primary. I can pay it off and is worth appx $300,000 and plan then to possibly pull out nice chunk of equity if needed to buy other rentals. Or can sell and profit $100,000 if didnt pay off and sold. Its in a very hot area working class Midwest. My concern is its large over 2300 sq ft and over half acre. Guess im not experienced in a little higher end rental properties yet so have concerns about finding tenants to pay large amount (likely $1300 and up?) and take care of very nice property. I live close ( manage all my own properties) and own other rentals free and clear in the area but none worth this much or as large. Any advice on this situation is greatly appreciated. 

[Tommy Adeoye]

Hi Jeff,

If you sell, you incur capital gain taxes . I am assuming you have some equity without having to sell the property as is. You think it will help some if you pulled the equity and applied it towards rehabbing the property in order to attract the working class tenants in your area? 

I say do a rent comparison, take advantage of the extra space, get creative . There are many tenants (especially with kids ) that will pay more if the property was nicer and space just enough to get away from the kids. Rehabbing also forces appreciation and you get more bang for your buck in the future . In my opinion, I think you have got plethora of options. It boils down to what fits your niche and strategy .