Sell or Continue to House Hack

[Matthew Miller]

I bought a house in Oakland CA for $645,000 in February of 2017. I’ve spent $50,000 on capital improvements (rental studio attached to house, new deck and kitchen on main house). The studio rents for $2000/mo. through short term rentals (Airbnb primarily). According to Zillow and Redfin with the updated improvements, the value is estimated at approximately $825,000. The question: do I sell now while the market is arguably still vibrant, pay off debt while keeping a net gain for reinvestment before a correction and rising interest rates , or continue to house hack this property, take out a HELOC (if and/or when possible) to further invest. * I have approximately $200,000 in personal debt between school loans and credit card debt. My goal is to create a real estate enterprise for passive cash flow and long term retirement. * this forum/podcast/blog is awesome. Thank you for any input you may have! Much appreciated!!

[Michael Needle]

Here's a question, how much would the house rent for? If you're single, or at least without kids, it might be worth it to live in the studio and rent out the house. When I was single I went from a 900sf 1br and moved to a 370sf studio (I owned both), it made me strongly regret ever buying the 1br, you need way less room than you think.