Do I sell or rent out my house?

[Hunter Crowder]

Advice needed! I am a realtor and I currently live / own a 2176 sq ft, 4 bed, 2.5 bath house that could sell for 389k based on current comps in my neighborhood.

Rents are also on the rise and could easily go for 2.6k a month. This is a family neighborhood and has great schools.

Option 1: If I sold, after fixes to house, Buyer commissions (would list myself), staging, closing cost, remaining mortage, I would net about 80k (pre tax). Possibly use that as a direct down payment on an investment property?

Option 2: Rent my house out at $2.6k, $400 above current Mortage, then Refinance for cash flow or later down the road for a dp on another property?

I’d be willing to house hack in the next property or rent out somewhere else to live in the mean time.

I would appreciate any advice or strategies! Already scheduled meetings to talk with my lender and accountants tomorrow to look at more details.

[Theresa Harris]

Under option 2 you mention the rent is $400 above the mortgage payments.  What happens once you add in property taxes, vacancy, maintenance and repairs?