Looking for advice - sell and cash out equity or hold and rent?

[David B.]

Hello- my wife and I are moving to Grand Forks, ND this summer and trying to decide what to do with our primary residence in Saint Paul (SFH, 6BR w/ 2non-conforming, near several universities). I currently have a HELOC on it to make down payment on our next primary, so we don't need to sell. Following are a few details on the property and can provide more if needed. On one hand I want to hold it since we have 3.5% interest rate in a highly desirable area which will continue to appreciate, but on the other hand I think we could leverage the equity into something in Grand Forks and save money by self managing and doing most repairs myself which wouldn't be an option if we held this place. Thanks in advance for any thoughts/advice/opinions.

mortgaged amount: $305K

market value: $450K

monthly rent estimate: $2,800

monthly cashflow estimate: $150

[Larry Turowski]

@David B.a good way to frame it is would you buy this house for $450k with $145k down to cash flow $150/mo and get some appreciation over the years?

When you are trying to decide whether to keep a primary residence you should think of it as buying it from yourself. This is pretty much the same thing as investors considering their return on equity and whether it makes better sense to keep or sell.

There are other issues to consider too. If you can’t find a better investment vehicle (a deal or other investment) to put your money to work then you should just stick with what you got.