$100k Profit or Rental?

[Brianna H.]

We bought our primary home in 2011 when houses were DIRT CHEAP. We have always considered renting the house out and buying a new primary, but house prices are through the roof in our area right now. What would you do in this situation? Here are the specifics:

-Bought for $90k, could easily sell for $190k in current market

($100k in profit + $30k in principal paydown)

-10 years left on loan @ 2.9%

-Could easily rent home out for $1500, PITI is $1000

To me, here are the pros/cons of renting / selling:

RENTING

-While we would be breaking even on rental at $1500 (or even paying some out of pocket), we would be reducing our mortgage by $600/mo. (Our goal is 10 paid off houses)

-Newer home = less repairs

-We lived in the home and are more familiar with issues than if we were to buy another house

-2.9% interest on a rental? Heck yes!! 

SELLING

-With $100k in profit, we would not have to pay ~$25k in capital gains like we would with if we rented house out

-Selling would possibly allow us to buy 2 more houses (although I haven't seen any deals I really like lately)