Is Renting Out This Property Realistic? SFR in San Antonio, TX

[Christopher Lessing]

Hello,

I am kicking around the idea of renting out our current home and buying another SFR to live in. I have a family with small kids so I don't think going into a multifamily will happen. We have only been in this home for 1 year so our equity is basically nothing. This home is in NW San Antonio, TX.

The Numbers:

Built 2007, 1280 SqFt 3/2/2

Original Loan Amount : $167,000 - 08/2018

Outstanding Principal : $164,500

Term and Interest : 4.75% 30 year fixed rate FHA Loan

Mortgage payment with insurance, pmi, taxes : $1345.00

Since buying, we have put in new kitchen appliances, extended the back patio and put a roof over the patio. We plan on renovating the bathrooms and replacing all bedroom carpet with hardwood or faux-hardwood tile.

Even after finishing these updates to the house, I don't think it will have appreciated enough to refinance (thinking BRRR). Other larger homes (2000-2500 sqft) in the neighborhood hood stay around $100-120 /SqFt.

My Question is, if I can rent this out for $1600/month would it be worth the trouble?  we know we don't want to stay here longer than another year. Let me know what you think, I'm open to ideas

[Brandon K.]

Depending on which part of NW San Antonio you're in, that $1600/mo figure could be feasible. The question will come down to whether you think it's worth the effort for the $250 per month (before maintenance, any utilities, vacancies). On the plus side, you'd at least be paying down the mortgage. Even though you're a contractor (with easier ability to make cheap upgrades), I'd be careful about the renovations you're considering unless you really think it will increase what someone is willing to pay to rent the place. In any case, renters are rough on hardwood floors. Best of luck!