Questions about Pflugerville, TX for a rental property.

[Jorge Avitia]

Hello! New to the community here :) 

6 years ago I bought my primary home at Pflugerville, it was a 1700 sqft new built home in a pocket neighborhood in the north west part of Pflugerville. 

Due to some personal decisions I bought a new home in round rock at the begining of 2020 about 7 miles further north of my current place and I'm moving there in a couple of months.

I was initially planning on selling my Pville home right after the move but now I'm thinking I may keep it for a few years, perhaps for another 5 years or so while the original builder warranty is still active, and keep it as a rental. I read a lot and I'm very interested in this real estate business now. 

The purchase price was 215k in 2015. I had put 20% down back then and my current mortgage is about $1300 which includes taxes and insurance. I've tried zillow and rentometer and it seems the house may rent for around $1700 so while the cash flow will not be something to brag about it may be a good idea for cashing out on appreciation a few years from now?

My current interest rate is 3.75 for a 30 year fixed. Is it a good idea to refinance to lower the monthly payments even if it's just something like $100 less? Can one do a refi while the house is rented?

Also I was wondering what tenants does Pflugerville attract? It's close to the Domain and somewhat close to Austin, my home is within walking distance of Dell round rock campus, but I don't see many tech workers living around here. 

Finally the house is in great condition and with a huge private backyard (no neighbors in the back) I don't know if that makes any difference.

Thanks for any insight!!

[Toye Ade]

If you can afford the two mortgages, should your tenant not pay, I'll say keep it. Appreciation is good in Austin now, and I don't see it slowing down any time soon. Also, be prepared to be cashflow negative if a major expense happens.