Dilemma: hold or sell in Austin

[Ryan Munson]

I recently accepted a job in the Katy/ Houston area that starts next month and am debating if I should sell or rent my house in Austin.  Here are some data points

• 180k is owed on the home
• Mortgage: $975 (P:$220/ Interest: $755)
• Recent appraisal: $280k
  • Comps for the area are between $260-$280k
  • Taxes: $5700
  • Insurance: $1020
• Rental comps: $1650-$1700
• Purchased in 2014: $203k
• Listing cost: $1360/ or 80% of the first mont's rent

Any input would be greatly appreciated!

Thank you,

[David Hines]

Based on these numbers, it doesn’t look like it would cash flow. You’d be far enough away that you should factor in property management costs. You’ll also want to factor in vacancy, maintenance costs, HOA dues, etc.

Do you need the equity for purchasing a place in the Katy/ Houston area? Even if the answer is no, if you had 100k would you invest it in a non-cashflowing property a couple hundred miles away?