Makes no sense to rent it out. Or does it?

[Mohit Datta]

On the east side, in Redmond, we are currently living in a property worth probably 1.6 with about 600K outstanding - and a monthly payment of about 4K including mortgage, insurance, property taxes etc.

Looking to leave the area.

Does it make sense to rent it out given that I’ll probably get 4K in rent?

I think it makes no sense since the 1M or so Invested in the stock market can bring me a better return - or I can put it down for my next house instead of selling stocks….

What am i missing?

If my hunch that it is correct why would anyone be renting out a single family home at all in this area where homes are worth 1.5M and rent is just 4K?

[Kiernan LaFaver]

It depends on how/if you want to deal with property management. It sounds like your mortgage is about equal to potential rent. Is there any cash flow involved? If so, is the positive cash flow enough to keep you invested in keeping the property? Also need to consider if you’d like to manage the property out of area and hire somebody. If the rental situation doesn’t make sense, it’s more logical to sell and use as down payments for next properties if that’s your goal. 

[Jonathan Bock]

@Mohit Datta

Everyone is different so nothing really that your missing do what is in your best interest and in alignment with your goals and values.  

Some owners do not and will not have the same needs as you and may not think like you.  

[Mohit Datta]

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[Megan Smith]

While the potential rental income of 4K is noteworthy, it's essential to consider various factors.

The local real estate market conditions, property management costs, and potential maintenance expenses should be factored in.

Additionally, evaluating investment alternatives like the stock market is prudent.

Renting out a property can offer long-term benefits, but careful financial analysis is crucial to determine if it aligns with your overall investment strategy and goals.