Should I Sell or Rent it Out - What Would You Do?

[Account Closed]

I have a question for you seasoned Investors.

We bought our first house 2 years ago - a really good deal on a foreclosure and we paid $84K. The same house was valuated at $135,00 from the outside only. Due to improvements inside and the shortage of houses in that price range in our area, I think I could sell it for around $140K. We bought a bigger house to move into, and I'm currenlty working on fixing it up before we move. My RE agent thinks I can get around $1000/month for rent and our mortgage payment (with escrows) is around $475.

What would you do? Would you take the profit and reinvest or go through the hassles of renting it out for the long haul? Or rent it out for a couple years and then sell?

[Brett Russell]

@Account Closed I think you need to ask yourself what you would do with the money if you sell.  If you're going to be able to put it to work performing better than it is now, then I'd consider selling.  I don't know your market but you might be able to buy a property (or 2) with that money that will cashflow better than this property.  Plus, maybe the "improvements" you did are too much for a rental and would just end up costing you more to repair down the road after tenant damage.

I do find it interesting that your question distinguishes between reinvesting or "going through the hassles of renting".  If you reinvest, what do you plan to do with the money that doesn't involve "the hassles of renting" ?