Thoughts on selling or LTR my residence

[Marc Brundige]

I am seeking advice on what to do with my current residence.

I am 60 years old and looking to downsize. The question I have is, do we sell the house or keep the house and rent it out?

Details

2,819 SF, single family residence, 4 bedroom, 3 bath house, with a pool

The house is in a very desirable location.

Market Value - $950,000

Mortgage Balance - $226,137 (10 years left)

Martgage Payment - $2,250/mo

Interest Rate – 3.5%

Average Rental comps - $4,430/mo (looking at the comps I think it is above average)

It certainly looks like it would cash flow, but that leaves buying a new house with a small downpayment and high interest rate. If I sold, I could be debt-free and have extra money each month to invest elsewhere. If I keep it, in ten years it will have possible appreciated to $1,400,000 now free and clear.

Thoughts?

[John Mason]

Marc Have you  heard of HomeTap? Does that work for you?

https://www.hometap.com/how-it-works

[Kristin Flores-Brockman]

Quote from @Marc Brundige:

I am seeking advice on what to do with my current residence.

I am 60 years old and looking to downsize. The question I have is, do we sell the house or keep the house and rent it out?

Details

2,819 SF, single family residence, 4 bedroom, 3 bath house, with a pool

The house is in a very desirable location.

Market Value - $950,000

Mortgage Balance - $226,137 (10 years left)

Martgage Payment - $2,250/mo

Interest Rate – 3.5%

Average Rental comps - $4,430/mo (looking at the comps I think it is above average)

It certainly looks like it would cash flow, but that leaves buying a new house with a small downpayment and high interest rate. If I sold, I could be debt-free and have extra money each month to invest elsewhere. If I keep it, in ten years it will have possible appreciated to $1,400,000 now free and clear.

Thoughts?

I think it all depends on your situation. Do you need the cash upfront? Do you want to take on the responsibility of being a landlord? There are definitely pros and cons to all situations, you would just need decide what is best for you.

Would listing it as a mid-term (traveling nurses, doctors, business professionals, contractors, etc) or a short term rental be an option? 

[Caleb Brown]

With you being 60 I would sell and buy a smaller house cash. No point in having leverage and having that stress. Would not be bad to hold so that's a good option too. Ultimately depends on you and what you'd feel comfortable with.

[Marc Brundige]

Would listing it as a mid-term (traveling nurses, doctors, business professionals, contractors, etc) or a short term rental be an option?

 Nothing is off the table at this point.

[Matt Solis]

If it were me I would do a HELOC to be able to tap into that equity, and use that to fund other investments. Keep the house and allow it to appreciate more. I would also explore MTR to maximize rents.