Sell vs. Rent House

[Ian Bollinger]

Hello,

I'm new to the site and thought I'd come out asking for insight in a current decision I am in the process of making. 

I own 2 homes in Canton, Baltimore City and will be living in the one I just bought. I first purchased in 2018 for 315k and have about 260k still owed on the mortgage. Looking at comps I think I would be able to get 325-330 if I sold this spring/summer. I wouldn't walk away with much more than I put down closing in 2018.. but the values in Canton have been very stagnant the past 10 years compared to the suburban areas in MD and I worry about the future, especially the risk of owning 2 homes in the city. This seems like the time to sell if you're going to sell. 

That being said, I could rent the house fairly easily to cover the mortgage and a little extra and don't mind the extra hassle. My biggest concern is the future of Baltimore City and the housing values in Canton.. tied with the fact that they are over 100 year old row homes, although both in good shape/renovated over the years. The 2nd concern is I have both dice on one neighborhood in Baltimore City and if things go down the chute they will together. Unlike the confidence I have in home value growth, I do have confidence there will be a strong rental market for years to come due to the prime location by Hopkins and many other hospitals/companies. 

I appreciate any insight / experiences shared. 

[Cody Benedetto]

Sounds like very valid concerns. It sounds like you aren't planning to continue investing where you live past this one property? Since you already live in the area and are comfortable with the potential rental income, why not hold that property and work towards a 2nd investment property outside of the Baltimore area? I've always liked the idea of having 1 rental property in my current neighborhood to keep tabs on the market, easy to self-manage, and stay cash-flowing while providing housing in my area. All other efforts could go towards that next opportunity to diversify.