Sell or Rent Home: what is better long term?

[Kristina Zuniga]

I am new to the Bigger Pockets podcast and am enjoying it and learning so much.  I am hoping to get some feedback from you all for my situation. I bought my house 4 years ago as my primary residence for $645k and put in $100k of renovations.  I am thinking of moving out soon and am debating of whether it is best to rent it out long term or sell it. If I rent it out, I could make approximately $300-$500 more than my mortgage (principal, interest, and property tax)… if I sell it in this hot market, I could sell it for at least $850k.  What is the financially best (rent or sell)? I know there are calculators out there but hoping to get more personal responses. 

[Jaron Walling]

@Kristina Zuniga Welcome to BP! This is a common question and the answer is SELL. Without the details of your property from a numbers prospective you will not have a good rental property. There's no way a property purchased for $650K + renovations cash-flows after all expenses and vacancy. If you want to "inject" money every year to hold a rental by all means go for it. That's not how I personally invest in real estate. From an emotional prospective you'll be looking for another property or renting for a while and there's nothing wrong with that. 

You have to make the decision on your own. You have to ask yourself what is the best use of your money. 

Have you considered a cash-out ReFi to take advantage of the equity? That's an easy way to get funds for the next deal.